XRP Falls Into Danger: Bears Pressuring Price, Risk of 2.39 USD?

XRP of Ripple has been trading under continuous selling pressure, trending along a descending parallel channel since August 2. Although this altcoin has broken out of this bearish structure multiple times, market sentiment remains completely negative, preventing any sustainable bullish moves. With increasing trading volume and heightened sell-off activity, XRP is likely to continue to incur losses this month. XRP Struggles to Escape from a Bearish Price Condition as Bears Keep Prices Low A descending parallel channel is formed when an asset continuously creates lower highs and lower lows within two parallel trendlines. This setup reflects the ongoing decline of buying pressure, as the sellers consistently overwhelm the bullish efforts to push the price higher. The one-day chart of XRP/USD shows that this altcoin has been trending in this channel since August 2, reflecting the ongoing sell-off that is putting pressure on the price of this coin.

In the past few weeks, this token has attempted multiple times to break through this bearish structure. However, each time it retests, it encounters strong sell-offs that prevent any successful breakout and keep XRP in a bearish trend. XRP Faces Bearish Prospects as Exchange Holdings Increase On-chain, the balance of XRP on exchanges is increasing, confirming the growing allocation among market participants. According to Glassnode, XRP reserves on exchanges have increased by 2% since August 27, indicating a rising trend of profit-taking among token holders.

The XRP balance on exchanges measures the total number of tokens held in the wallets of exchanges at any given time. When this balance increases, it signals that investors are transferring tokens from their private wallets to the exchange, often with the intention to sell. As of the time of writing this article, 3.32 billion XRP worth 9.3 billion dollars are being held in the wallets of the exchange. Such a high exchange balance means that the available liquidity for trading will be higher, which could cause the price to fall if the demand for XRP does not keep up. Moreover, the setup of the Moving Average Convergence Divergence (MACD) indicator of this altcoin supports this bearish outlook. At the time of writing, the green MACD line (of XRP is below the orange signal line ) and has maintained this since July 25.

The MACD indicator determines trends and momentum in price movements. It helps traders detect potential buy or sell signals through the intersections between the MACD line and the signal line. When the MACD line of an asset is below the signal line, buying pressure has decreased, further reinforcing the likelihood that XRP will continue to fall in the short term. Support Level 2.63 USD Noted as Bears Take Control XRP is at risk of falling to $2.63 if selling pressure increases. If the buyers cannot defend this support level, the price may drop further to $2.39.

However, XRP could witness a recovery and rise above $2.87 if buying activity returns to the market.