XRP Under Pressure: Bounce or Capitulation?
The past week will remain etched in the memory of XRP holders as one of the most challenging. The token lost 42% of its value in a widespread panic triggered by the announcement of 100% American tariffs on Chinese products. This trade escalation caused a domino effect across all financial markets, crypto included.
The XRP hit a floor of $1.77 before initiating a modest technical rebound. This correction comes after several weeks of consolidation between $2.80 and $2.30, a range that traders were watching closely. The violence of the drop once again illustrates the growing sensitivity of digital assets to macroeconomic events.
Trading volumes exploded during the capitulation phase, signaling massive forced liquidation of leveraged positions. On-chain data shows that several million dollars of long positions were liquidated within hours, amplifying selling pressure. This sequence reminds us that despite the gradual maturation of the sector, volatility remains an intrinsic component of the crypto market.
Geopolitical shock hits the entire crypto market
Cryptocurrencies confirmed their correlation with traditional markets during this storm. Bitcoin retreated 9%, approaching the psychological threshold of $110,000, while Ethereum fell more than 12% below $3,800. BNB and Solana also recorded double-digit losses, reflecting a widespread risk aversion.
This synchronization with global stock indices raises questions about the status of Bitcoin and altcoins as safe-haven assets. Institutional investors clearly treated these assets as speculative positions to reduce during periods of uncertainty. The flight to liquidity was rapid and brutal.
For XRP specifically, the correction comes at a delicate time. The token was evolving in a consolidation phase after an impressive rally earlier in the year. Current levels around $2.30 represent a crucial technical zone that bulls must absolutely defend to preserve the medium-term bullish structure.
A symmetrical triangle broken to the downside
From a chartist perspective, XRP broke below a symmetrical triangle that had framed the price since mid-July. This continuation pattern transformed into a reversal pattern following repeated failures to break the resistance at $2.85. The bearish engulfing candle on the daily chart sealed this momentum shift.
The token now trades below its 100-day moving average (MA100) located at $2.63, the first signal of structural weakness. The daily RSI at 35 indicates oversold conditions without a clear bullish divergence. However, the lower wicks observed on recent candles show emerging buyer interest in the $2.30-$2.32 zone.
This zone constitutes the last bulwark before deeper support levels. A bounce from this level could propel XRP toward $2.70, corresponding to the former lower bound of the triangle and the MA100. If this fails, bearish targets are at $2.02 (key Fibonacci level) and then $1.77, where historical accumulation zones could attract conviction buyers.
Trading scenarios and short-term outlook
Technical traders are watching several possible configurations. Maintaining above $2.30 accompanied by a resumption of volumes would constitute a tactical buy signal with targets between $2.70 and $3.18. Conversely, losing this support would open the way for a bearish extension toward $2.02, or even a retest of the recent low.
The long-term structure of XRP remains intact despite this severe correction. The project’s fundamentals haven’t changed, and institutional adoption continues to progress. This consolidation phase could serve as a reset before a new bullish impulse, provided that the macroeconomic context stabilizes. The coming days will be decisive in validating or invalidating the recovery scenario.
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Purchase guide on Bitget:
- Create an account on Bitget.
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