XRP Tanks Below $3: Will the 9% Weekly Drop Lead to a $2.45 Target?

XRP has struggled to maintain momentum since hitting its all-time high of $3.41. The altcoin has now dropped below the critical $3 threshold, losing 9% of its value in the past week. With bearish sentiment growing, spot market outflows have further intensified the pressure on XRP’s price.

Bearish Sentiment Evident in Market Indicators

Recent analysis of the XRP/USD one-day chart highlights a clear shift toward bearish momentum. The Elder-Ray Index, a key indicator of buying and selling pressure, recorded a red histogram bar for the first time in 15 days. Currently, the index sits at -0.10, signaling that sellers have taken control.

*XRP Elder-Ray Index. Source| TradingView*

Moreover, XRP’s spot market data confirms the dominance of bearish sentiment. Over the last three days, outflows from XRP spot markets reached $96 million, according to Coinglass. These significant outflows suggest that investors are either taking profits or losing confidence in the asset. This behavior has placed additional downward pressure on XRP’s price.

Technical Indicators Confirm Extended Bearish Trend

XRP’s Moving Average Convergence Divergence (MACD) indicator also paints a negative picture. The MACD line now lies below the signal line, which confirms bearish momentum. This alignment indicates that selling activity far outweighs buying interest, leaving little room for price recovery in the near term.

*XRP Price Analysis. Source| TradingView*

If this trend continues, XRP’s price could drop further to $2.45. Such a decline would represent a significant loss for investors, especially those who entered during the rally to $3.41.

Can XRP Bounce Back?

Despite the current bearish outlook, a resurgence in demand could potentially reverse XRP’s fortunes. A sudden influx of buying activity might propel the price back toward its all-time high of $3.41. However, market confidence must improve for this scenario to unfold.

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Until then, investors face mounting pressure as bearish forces dictate the market’s direction. Monitoring key support and resistance levels will be essential for navigating XRP’s volatile path.

XRP’s future remains uncertain, with sellers currently steering the market toward further losses. Will demand resurface in time to save the altcoin? Only time will tell.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.