XRP (Ripple), Support Line 'Collapses' Twice...Emergency to Defend $1.27 Defense Line

▲ XRP/AI-generated image

As XRP gave up the $1.36 support line, $1.27 emerged as the next key defense line.

According to the cryptocurrency specialized media outlet CryptoPotato on September 3 (local time), trader and analyst ChartNerd analyzed that XRP has been moving between $1.47 resistance and $1.36 support. The $1.36 support line broke twice. XRP formed a lower high again below the bearish trend signal of $1.39 after falling back from $1.43.

On August 22, ChartNerd warned of a correction risk after XRP reached a multi-month high of $1.70. At the time, he said, “If the weekly candle closes below the 50-week Exponential Moving Average (EMA), it could be an early warning sign of a larger pullback.” Subsequently, XRP closed weekly below the 50-week EMA for two consecutive weeks. The decline from the high was approximately 22%. ChartNerd presented $1.27, where the 20-week EMA is located, as the next weekly support line.

On the upside, $1.40-$1.43 is the first resistance zone. After that, $1.47, $1.65, $1.82, and $2.40 are sequentially placed as resistance lines. Key support lines on the downside are $1.30, $1.27, $1.21, and $0.85. $0.85 is the price range ChartNerd has identified as an accumulation zone since June.

A golden cross to support a trend reversal has not yet formed. XRP is currently below the 50-week EMA and above the 20-week EMA, showing a compressed movement between the two averages. ChartNerd believes it is difficult to confirm a bottom until both average lines are recovered and maintained as support. He compared the current structure to the price compression that occurred before the August bullish breakout.

Unlike the technical bearish signals, XRP spot ETFs saw an inflow of over $110 million last week. This is the largest weekly net inflow since December last year. In September, a Senate vote on the U.S. cryptocurrency market structure bill around the 15th, and a shareholder vote related to Evernorth’s Nasdaq listing plan are also scheduled. ChartNerd left open the possibility of further correction to $1.27 or below until the resistance zone is recovered.

[Article Key Summary]

-XRP gave up the $1.36 support line twice, and $1.27 was identified as the next key weekly support line.

-On the upside, $1.40-$1.43 and $1.47 are the major resistance zones that must be overcome first.

-Despite XRP spot ETF inflows and key September events, there remains a possibility of further correction until technical resistance is recovered.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*