The price of XRP fell nearly 5% to $1.05 on July 28, as a broader risk-off move and long-term forced liquidation pushed the token below a closely watched technical limit.
summary
- XRP fell from approximately $1.11 to $1.05The support near $1,054 was broken.
- The 4-hour RSI fell to 25.93Which puts XRP in the oversold zone.
- Chaikin’s daily cash flow reached -0.12This indicates continued net capital outflows.
- Liquidation sets near $1,075 and $1,097 It can limit early recovery.
XRP price breaks below the double neckline
According to data from crypto.news, XRP (XRP) The price is trading at $1.049 at the time of writing after hitting an intraday low of $1.0486 on Binance. The decline extended a broader downtrend that has kept the token under pressure since May.
The 4-hour chart shows that XRP is forming two circular tops near $1.17, creating a double top structure. Both advances lost momentum before buyers were able to establish support above $1.15.
A horizontal neckline near $1,054 separates the pattern from its bearish confirmation. XRP moved below this level on July 28, exposing the psychological $1 mark and late June lows between $1.01 and $1.03.
This collapse came after repeated failures around $1.11 during previous sessions. Sellers took control once XRP lost $1.08, with the decline accelerating as the price approached the double neckline.
Momentum indicators reflect the speed of movement. XRP’s 4-hour RSI fell to 25.93, below the 30 level typically associated with oversold conditions. Its RSI moving average remained much higher at 41.94, showing how quickly short-term momentum weakens.
Oversold readings can support a temporary recovery, but do not confirm the formation of a bottom. XRP will first need to reclaim the broken $1,054 level and then create a higher low.
Liquidations are accelerating the decline of XRP
CoinGlass’ 24-hour heatmap shows XRP falling from around $1.105 to $1.05 as the market moves through several leveraged trading zones.
The initial decline cleared liquidity around $1.095 and $1.08. Once these levels failed, the price quickly moved towards $1.06 as leveraged long positions faced liquidation and stop-loss orders were triggered.
XRP is now trading near another clear liquidity concentration between $1,043 and $1.05. This group could temporarily slow the decline, although a clean move through it would leave less clear support before $1.02.
Most of the larger liquidity pools are above the current price. The heat map shows concentrations near $1,062, $1,075, and $1,097, with the largest nearby range just below $1.10.
These levels can act as price magnets during a bounce because traders may target areas where short positions are at risk. However, they can also become resistant if their carriers use recovery to reduce exposure.
The provided market brief attributed part of the selling pressure to the movement of more than 150 million XRP from private wallets to centralized exchanges over the course of 48 hours. Without labeled transaction records or wallet labels, these transfers should be treated as a reported trigger rather than confirmed proof that all tokens have been sold.
XRP indicators indicate continued selling pressure
The daily chart of XRP shows the price closing below the lower band of the Bollinger Band indicator, which stands near $1.0538. A close outside the range reflects unusually strong downside momentum, although it also increases the likelihood of a medium-term reversal move in the short term.
The midpoint of the Bollinger Band is located near $1.0981, closely matching the strongest nearby liquidity group on the heatmap. A recovery above this level will return XRP to its recent trading range and weaken the immediate bearish setup.
The upper range is located much higher at $1.1423. XRP will need to reclaim that area before the daily structure begins to shift away from the pattern of lower highs that has developed since May.
Chaikin’s money flow settled at -0.12 on the daily chart. A negative reading indicates that selling pressure has outpaced accumulation during the index’s 20-day window.
The 4-hour Moving Average Convergence Divergence indicator on the 4-hour frame also remains bearish. The MACD line has fallen to -0.0125, below the signal line -0.0072, while the histogram stands at -0.0052.
Immediate support lies between $1,043 and $1.05. Below this range, traders can see $1.02 and $1.00. Resistance is located near the $1,054, $1,075, and $1,098 levels, followed by the previous rejection area around $1.11.
Global sell-off adds pressure ahead of Fed
The decline in XRP coincided with a sharp decline in Asian technology stocks. South Korea’s Kospi index closed 10.84% lower after losses in Samsung Electronics and SK Hynix led to its biggest decline in five months.
This sell-off spread across other Asian markets and increased demand for low-risk positions ahead of the Federal Reserve meeting on July 28-29. High market volatility can affect altcoins because traders often reduce their most speculative holdings first.
Cryptocurrency sentiment also faced a setback in US politics. Senate leaders temporarily pushed aside the Digital Asset Market Clarity Act while prioritizing federal nominations and the Russia sanctions bill, reducing the time available before the August recess, according to the British newspaper “Daily Mail”. CoinDesk.
Meanwhile, wallets linked to BlackRock exchange-traded funds transferred about $271 million of Bitcoin and Ethereum to Coinbase Prime. Such movements can accompany the activity of creating and redeeming ETFs, which means they do not by themselves demonstrate that BlackRock conducted a discretionary market sell-off.
For US XRP holders, the Federal Reserve meeting and the remaining Senate legislative docket are the main near-term external catalysts. Technically, holding the $1.043-1.05 area could trigger an oversold bounce, while a daily close below it would increase the risk of a move towards $1.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
