XRP faces support pressure: Downside targets to watch

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XRP drops 2.62% to $1.40 today

Highlights

XRP spot ETFs drew $1.57 billion in total inflows and posted a single-day volume of $125 million on August 20.
Large holders accumulated 380 million XRP tokens during the week, leading to tighter supply conditions.
XRP trades with mixed short-term pressure and prevailing negative momentum signals, projected to stay within $1.3064 to $1.5746 over the next sessions.

Large inflows and holder accumulation tighten supply despite selling

XRP spot ETFs registered $1.57 billion in total inflows and reached a single-day volume of $125 million on August 20, expanding access for institutional investors, according to Crypto. Accumulation of 380 million tokens by large holders during the week, as also reported by Crypto, contributed to tighter supply dynamics. In parallel, a Clearpool and Cicada credit fund was launched on the XRP Ledger utilizing RLUSD as collateral, while live settlement testing on JPMorgan’s Kinexys platform demonstrated the ledger’s technical capability for rapid cross-border treasury redemption. Ripple’s recent updates to core development libraries and protocol enhancements, noted by Crypto Economy, further highlighted ongoing network development, though price action has remained under broader selling pressure.

Negative momentum persists amid divergence with intraday buying

On the hourly timeframe, XRP has crossed above its MA-20 but remains below the MA-50, while continuing to hold above the long-term MA-200. Immediate support is marked by the Ichimoku Kijun at $1.4044. Momentum indicators remain mixed: RSI is at 46.15 (Sell) and both MACD and ADX signal continued selling pressure, whereas Stochastic RSI and CCI are neutral. Bull/Bear Power indicates moderate buying strength intraday, but the Awesome Oscillator is neutral. This creates a divergence between negative momentum signals and some intraday buying activity.

Rangebound trading persists as downside odds marginally increase

For the short-term, XRP is likely to remain rangebound, with an expected volatility band between $1.3064 and $1.5746 over the next two to three sessions. The probability of a downward move is slightly higher at 55%, with a 45% chance for an upward breakout. Upside momentum could build if the price breaches near-term resistance, while a drop below immediate support would point towards further declines within the established range.

Anton Kharitonov, analyst at Traders Union, sees recent institutional activity and protocol upgrades as constructive for XRP’s long-term narrative, but notes that these have not offset current negative price momentum. He remains cautious given the ongoing selling pressure and the moderately higher likelihood of further downside within the short-term range. Technical signals are mixed, with resistance still intact and only isolated pockets of intraday buying. "Until XRP breaks above recent resistance and shakes off selling pressure, I see more risk than reward for buyers here."

Earlier, analysts noted that strong institutional inflows and robust technical momentum were supporting XRP, though persistent overbought conditions left the asset vulnerable to further pullbacks. The current setup adds nuance by highlighting mixed momentum signals and moderate buying strength, making the $1.4044 support zone pivotal as traders assess the likelihood of a sustained range or potential downside break.

Source of Data: XRP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.