XRP’s technical structure is signaling further losses ahead after the asset plunged below the psychological $3 mark.
The breakdown below $3 follows a failed attempt to hold above the $3.50 resistance level, which had capped the asset’s rally in late July. The sharp rejection from this area has flipped the short-term trend bearish, with XRP now eyeing lower support levels.
According to analysis by Ali Martinez in an X post on August 2, the next key area to watch is between $2.55 and $2.40, levels that acted as a strong consolidation zone in April and early May.
Now, a sustained drop below this range could open the door for a retest of the $1.90 level, last seen in early April. On the upside, $3 now acts as fresh resistance. To this end, unless bulls can reclaim this level quickly, the path of least resistance remains bearish.
It’s worth noting that several factors triggered XRP’s plunge below the $3 mark amid broader bearish sentiment across the cryptocurrency market.
In this case, on Friday, markets were rattled by a disappointing U.S. jobs report. Just prior, the White House imposed sweeping global tariffs, unsettling investors.
Later in the day, President Donald Trump escalated tensions by ordering nuclear submarines near Russian waters in response to threats from a Russian official, causing risk assets to retreat.
XRP price analysis
At press time, XRP was trading at $2.94, down about 0.13% in the past 24 hours and over 8% on the weekly chart.
At its current price, XRP maintains a modest premium over its 50-day simple moving average (SMA) of $2.64 and a significant gain over the 200-day SMA of $1.87. This positioning above both key SMAs suggests a sustained bullish trend in both the short and long term.
On the other hand, the 14-day Relative Strength Index (RSI) stands at 50.23, indicating neutral momentum. This suggests that XRP is neither overbought nor oversold at the moment.
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