XRP Price News: XRP Risks 12% Drop as Market Retests Key Support

XRP (XRP) has notably underperformed other altcoins in the top 5 like Solana (SOL) and Ethereum (ETH), booking a 7-day loss of 0.5% while the latter have experienced gains during the same period.

The token is currently hitting a key support at $1.35, from which it has bounced multiple times in previous days. However, investors’ interest remains weak, as these price spikes have failed to produce meaningful gains.

Net inflows to exchange-traded funds (ETFs) linked to this altcoin stood in positive territory for 7 days in a row until yesterday, when investors finally took out around $6 million after pouring around $28 million the week before.

Although market sentiment has been improving lately, altcoins are still under water for the year. The Fear and Greed Index picked up from a recent low of 5 to 25 at the time of writing, which counts as a mild recovery from extremely depressed levels.

Nonetheless, it is still too early to tell if we have hit bottom yet, as the selling pressure persists every time the market manages to push prices to higher ground.

XRP Hits Sell Wall at $1.45

In the case of XRP, the latest sell wall seems to have been the $1.45 area. The token started to retreat after hitting this mark on Wednesday, and is now heading to retest its closest area of support at $1.34.

The 4-hour shows that the price already broke below this level once, and could now move to retest the $1.27 support first and then the $1.21 area next if the downtrend continues.

The Relative Strength Index (RSI) favors a bearish outlook as well, as the oscillator moved above the signal line. At 40, this means that negative momentum is gaining traction, which increases the odds of a move to this low level.

In total, XRP is risking a 12% loss if that bearish breakout occurs.

Two Consecutive Sell Signals Reflect Growing Selling Pressure

Our signals system has picked up two consecutive sell signals in the hourly chart that favor a bearish outlook as well.

The selling pressure seems to be increasing lately, and could further accelerate during the weekend when volumes are thinner.

The last time that XRP got to these lows, it bounced back and a buy signal popped up that created room for a 1.7x risk-reward trade.

Ideally, we would wait for the price to hit $1.34 again and see if another buy signal emerges. That said, if the opposite occurs and the price breaks below this area and a “sell” signal shows up, that would create room for a short position with a target set at around $1.27.

These signals track “decisional” candles that feature above-average volumes, a clear trend direction, and a specific candle pattern that aims to identify “institutional” or whale-level participation.