As XRP struggles to recover, Ripple co-founder Chris Larsen has sold 200 million XRP. What lies ahead on August 27 and beyond? Dive into the technical analysis and crucial signals to watch for.
XRP continues to display a strong bearish divergence on the weekly chart, a signal that has historically preceded significant corrections. Additionally, the price is moving sideways without a clear direction, reflecting conditions observed earlier this year when XRP faced downward pressure before its next movement.
These concerning technical patterns suggest that XRP might be vulnerable to further short-term volatility. Investors should remain vigilant and ready to seize opportunities that may arise.
Regarding price levels, XRP has immediate support between $2.85 and $2.90. If this level breaks, the price could slide toward $2.75. Stronger resistance sits between $2.55 and $2.62, a level that has hindered recent rebound attempts.
As previously mentioned, Ripple had high probabilities of bouncing on its trendline and support at approximately $2.83. Now that this has occurred, caution is warranted.
Indeed, XRP is hitting a POC and the median Bollinger Band resistance on the 2H chart. Moreover, its 2H RSI shows short-term overbought conditions.
If XRP fails to strongly break through the resistance at $3.07, it could seek the $2.73 level in the next 24 hours. Subsequently, a rejection from the trendline at $2.85 could extend its decline to $2.34 in the coming weeks.
In summary, XRP’s destiny is closely tied to Bitcoin’s and the overall market sentiment. If Bitcoin continues to weaken, XRP and other altcoins could face new downward pressure. However, if Bitcoin’s dominance decreases, some altcoins might show better resilience.
Furthermore, on-chain data shows that whales continue to sell their holdings.
In conclusion, the sale of 200 million Ripple tokens by Chris Larsen is drawing investors’ attention to potential market movements and upcoming volatility. Although XRP is currently struggling to regain ground, savvy investors should closely monitor key price levels and be ready to capitalize on opportunities that may emerge in the coming days.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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