XRP is currently trading around $1.35, down approximately 6% over the past week after falling below a support level that chart analysts had been monitoring since late August.
According to technical analysis, XRP faces a series of resistance levels between $1.40 and $1.47 before potentially reaching $1.47. Analyst ChartNerd notes that the token's second failed weekly close above its 50-week exponential moving average (EMA) suggests room for a deeper decline to $1.27 or lower.
Recent Price Action and Market Context
XRP touched a multi-month high of $1.70 on August 22, following a broader market rally triggered by Bitcoin's rise from under $65,000 to $80,000. The cryptocurrency gained 70% in three days but ended August just under $1.40, still marking a 30% monthly gain despite the pullback.
ChartNerd had flagged retracement risks after the August peak, warning that a weekly close below the 50-week EMA would signal potential for larger pullback. The token has since recorded two consecutive weekly closes beneath this average, with the retreat measuring approximately 22% from the peak.
Key Price Levels
On the upside, resistance levels are positioned at $1.40 to $1.43, then $1.47, followed by $1.65, $1.82, and $2.40. Downside support levels being monitored include $1.30, $1.27, $1.21, and $0.85.
The next major support level sits at the weekly 20-week EMA, currently positioned at $1.27. Until XRP reclaims and sustains the $1.50 level, the technical picture remains uncertain.
Market Signals
XRP's exponential moving averages are coiling, with price trapped below the 50-week average and above the 20-week one. A golden cross has not yet formed, and analysts are comparing the current compression to the consolidation that preceded August's breakout.
Spot XRP exchange-traded funds pulled in more than $110 million in inflows last week, marking their strongest week since December. September includes potential catalysts including a CLARITY Act vote in the Senate around September 15 and a shareholder vote on Evernorth's planned Nasdaq listing.
