Usman Salis
XRP has hit a rough patch, sliding below the psychologically important $3 level as traders grapple with a mix of technical headwinds and regulatory uncertainty. The token's struggle to break above $3.05 resistance has left many investors questioning whether the recent rally has run out of steam.
The numbers paint a clear picture of weakening momentum. XRP's 7-day RSI sits at 44.3, while the MACD histogram shows -0.0617, both indicating that buyers are losing their grip. More concerning is the fact that XRP has slipped below its 30-day moving average of $3.02, which now acts as a ceiling rather than support.
XRP Price Faces Critical Support Test at $2.78
Technical analysts are keeping a close eye on the $2.78 level, which represents the 61.8% Fibonacci retracement. If this support gives way, XRP could find itself sliding toward $2.55, a move that would likely trigger more selling from nervous holders.
The token's failure to hold above $3 comes at a particularly awkward time. Trading volume has dropped 7.27% to $5.41 billion in the past day, suggesting that interest is waning just when XRP needs it most. This combination of technical weakness and declining participation rarely ends well for any cryptocurrency.
What's particularly frustrating for XRP bulls is that the fundamentals haven't necessarily deteriorated. The asset maintains its position as the third-largest cryptocurrency with a market cap of $174.95 billion, but market sentiment has clearly shifted.
SEC Lawsuit Resolution Still Hangs in the Balance
The ongoing SEC case continues to cast a shadow over XRP's price action. While rumors swirl about a potential resolution by August 15, with some suggesting the SEC might withdraw its appeal, nothing concrete has materialized. This uncertainty has created a "sell the news" environment where traders are taking profits rather than waiting for clarity.
The legal limbo is particularly painful because it prevents institutional investors from fully embracing XRP. Many potential buyers remain on the sidelines, unwilling to commit capital while regulatory questions persist.
XRP Holders Face Wave of Sophisticated Scams
Adding insult to injury, XRP holders are dealing with an uptick in fraudulent schemes targeting their holdings. Phishing attempts, fake airdrops, and deepfake videos featuring supposed Ripple executives have flooded social media platforms, shaking confidence among retail investors.
The situation got worse when a whale dumped 75 million XRP on Korean exchange Upbit, triggering a 15% flash crash that caught many traders off guard. These kinds of sudden moves highlight how thin liquidity can be, even for major cryptocurrencies like XRP.
For now, XRP's fate hinges on whether it can hold the $2.78 support level while waiting for either legal clarity or a broader market recovery. Bulls are hoping that any positive news on the regulatory front could quickly reverse the current downtrend, but until then, the path of least resistance appears to be lower.
Usman Salis
