XRP Price Drops 5%, Analyst Warns of Downside Pressure
XRP is trading at $1.39 after a 5% decline on August 29, marking the token's erasure of its recent rally. The previous quarter value area high of $1.43 has become resistance rather than support for XRP, following a brief reclaiming attempt after strong ETF inflows and favorable weekend trading. A clean break below this level shifts the next downside target to $1.30.
The analyst notes that XRP's order flow remains a positive sign, with funding rates dropping to low levels, suggesting potential oversold territory. However, declining ETF inflows are also worth monitoring, as they may indicate a market top. Historically, when outflow trends begin to shrink rather than accelerate, it often marks a market bottom.
The analyst's base case includes consolidation around $1.43, with a possible brief spike down or up. The upside target if strength holds is $1.55, while the downside target if $1.43 fails to reclaim is $1.30. A payrolls figure that comes in significantly out of line with expectations could distort near-term price action.