The global cryptocurrency market cap stands at $3.87 trillion. Bitcoin slipped to nearly $110,000 earlier this week, its lowest in seven weeks, raising concerns about a possible retest of the $100,000 level. Ethereum also faced sharp swings but still holds above $4,500, while XRP trades around $2.97.
On the weekly timeframe, XRP continues to show a bearish divergence. Price action has been making higher highs, but the RSI has been moving in the opposite direction with lower highs. This kind of setup has historically hinted at weakness and a market correction.
Analysts warn that this divergence is not a short-term signal. It could stretch over several weeks or even months, mostly a broader cooling phase for XRP.
With Bitcoin dominance slipping and altcoins enjoying a temporary bounce, XRP looks set for a short-term relief rally. This does not cancel out the larger bearish divergence on the weekly chart, but it does mean that there could be a few days of upward price action before the next spree of selling pressure arrives.
Important resistance areas remain in place. The first sits around $3.10, while the stronger ceiling lies between $3.34 and $3.40. If XRP manages to break above these levels, it could shift sentiment and encourage buyers. If not, another pullback is likely.
Support Zones Remain Critical
If XRP fails to hold its short-term rally, support zones become important markers to watch. The $2.85 to $2.90 range has acted as a solid floor in recent weeks. Below that, $2.75 offers another safety net, while the $2.55 to $2.62 zone represents a critical demand area. A breakdown under this zone could deepen the bearish phase significantly.
Overall, XRP remains trapped in a sideways range. The next few days may bring some bullish relief, but the larger trend still points toward consolidation and potential cooling into September.
