XRP Faces Pressure Near $3.00 Support Level
Ripple’s XRP started the week under pressure, testing the $3.00 support level on Monday. The broader cryptocurrency market is also showing bearish signs. Despite this, retail interest in XRP remains strong. The open interest (OI)-weighted funding rate is steady at 0.0087%, indicating more traders are taking long positions.
Network Activity Declines Despite Retail Demand
Even with high retail demand, XRP’s on-chain activity is slowing down. Data from CryptoQuant shows active addresses on the XRP Ledger have dropped by 55%. The number fell from about 50,000 in mid-July to around 22,500 now. This decline means fewer users are sending or receiving XRP. Lower network activity could lead to less demand and price stagnation or further declines.
Technical Outlook: Key Support Levels to Watch
XRP is trading near $3.00, down from a recent high of $3.06. A descending trendline and the 50-day Exponential Moving Average (EMA) at $2.94 act as important support levels. The Relative Strength Index (RSI) has fallen to 53, suggesting weakening bullish momentum. If the RSI drops further, XRP could test the 50-day EMA support.
Additional support levels include the 100-day EMA at $2.81 and the 200-day EMA at $2.56. Traders should watch the Moving Average Convergence Divergence (MACD) indicator closely. A bullish signal occurs if the MACD line stays above the signal line, possibly pushing XRP toward resistance at $3.18. A bearish signal would appear if the MACD line crosses below the signal line, indicating more selling pressure.
