Will XRP Price Drop Below $1.40 Support with Bearish MACD Crossover?
The XRP price has been stabilizing over the last week, maintaining support at $1.40 amidst market fluctuations. However, a potential bearish MACD crossover poses the risk of dropping below this critical support level.
Summary
- XRP is trading within a narrow range of $1.40–$1.46 after a 17% surge, with buyers struggling to breach the $1.45 resistance.
- On-chain and derivatives indicators suggest waning momentum, highlighted by decreasing network growth, lackluster whale activity, and a long/short ratio below 1.
- A looming bearish MACD crossover and a liquidation cluster at $1.40 imply a heightened risk of a drop towards the $1.30 support level.
According to data from crypto.news, XRP (XRP) saw a 17% increase to a monthly peak of $1.50 in April, before consolidating in the $1.40-$1.46 range this past week as investors remained cautious amid stalled peace discussions between the U.S. and Iran, affecting the Strait of Hormuz, a crucial maritime route for global oil and energy transport.
In contrast to Bitcoin (BTC), which has been on the rise since early April, XRP has struggled to maintain its momentum, with buyers failing to push the asset above the $1.45 resistance zone.
Currently, on-chain data indicates that the token may soon breach the $1.40 support level, driven by a notable decline in network growth and decreasing whale accumulation. CoinGlass data reveals a significant liquidation cluster at $1.40, serving as a price magnet for market makers seeking liquidity.
Simultaneously, charts suggest that the token may be entering a distribution phase as trading volume decreases. On the XRP daily chart, MACD lines are nearing a bearish crossover confirmation, often indicating significant downside potential in the following sessions.
Additionally, the Supertrend indicator has turned green, suggesting that the local trend remains technically bullish, but this conflicting signal indicates a heightened struggle between bulls and bears.
Consequently, once the MACD crossover is confirmed, XRP’s price may decline to $1.30, the next significant psychological support level, and potentially lower if the broader market sentiment worsens.
Derivative traders are already positioning for this change; data from CoinGlass indicates that the long/short ratio of XRP futures has dropped below 1, suggesting that a larger number of traders are betting on further price declines.
Disclosure: This article does not constitute investment advice. The content and materials provided on this page are for educational purposes only.