XRP fell 8% on the weekly chart as bears pushed the price down to test support at $1.
Ripple (XRP) Price Outlook: Analysis
Key support level: $1
Key resistance levels: $1.40, $1.60, $2.00
Price Reaches $1
Over the past week, XRP dropped to $1 after sellers dominated trading. After testing this important psychological support, the token staged a short-term bounce that pushed the price up to about $1.18.
Because XRP established a lower low and the downtrend was confirmed, the current support at $1 is likely to face renewed pressure. Continued weakness here could force buyers to retreat further, with the next significant support for sellers located near $0.80.
Rising Sell Volume
The recent decline was accompanied by a spike in sell volume, reaching levels not seen since early February when the price also approached $1. This increase in selling activity reinforces the bearish outlook and indicates that sellers currently have conviction.
The main question is whether XRP can hold the $1 level or if it will eventually turn into resistance as the market seeks lower prices to attract buyers. The chart does look oversold at present, so a decisive move lower may take some time unless selling pressure intensifies.
Daily RSI in Oversold Territory
The daily RSI slipped into oversold territory after falling below 20, indicating that selling may have been overextended and a corrective bounce is possible before sellers regain control. An oversold reading often precedes at least a short-term rebound as exhausted sellers step back and buyers look for value.
The indicator’s moving average is also trending downward, suggesting the RSI could dip back into oversold levels again. If the RSI later forms a higher low from those levels, it would be an early technical signal that a more significant reversal could be developing.