Why is the Ripple (XRP) Price Down This Week

XRP is under $3 as bears take over the market.

Key Support levels: $2.5, $1.6

Key Resistance levels: $3, $3.3 

1. Bullish Momentum Stopped

On Monday, XRP briefly fell to $1.8 before recovering. This effectively stopped the bullish momentum and has put sellers in charge of the price action. The current support at $2.5 appears fragile and if sellers return in force, then this cryptocurrency could go to $1.6 next.

2. Falling Volume Was an Early Bearish Signal

Ever since XRP’s price moved above $2, the volume has been making lower highs, including when the price went towards $3.4. This was an early bearish divergence which showed that buyers are becoming exhausted. On Monday, this was confirmed as momentum shifted and a correction started.

3. Bearish Divergence Confirmed

A bearish divergence was also present on the weekly RSI and has now been confirmed by this latest price action. XRP appears to have made a top at $3.4, at least for now. This correction could be significant if buyers don’t return soon as sellers will aim to break $2.5 and aim for $1.6.

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