Technical forecast: XRP is showing bearish signals

XRP shows a weak technical structure on the daily chart, which is confirmed by multiple bearish signals, including the Relative Strength Index (RSI) that is trending downwards.

After reaching its peak at 88 in the overbought zone, the Relative Strength Index (RSI) settled just below the midline, indicating a retreat in buying pressure. The downward trend may extend towards the 50-day Exponential Moving Average (EMA), providing support at $2.77 if investors maintain the prevailing risk-averse trend in the broader cryptocurrency market.

The sell signal issued by the Moving Average Convergence Divergence (MACD) indicator on Friday encouraged investors to reduce their exposure as they hope to buy XRP again at a lower price.

The feeling of risk may remain high as long as the blue MACD line stays below the red signal line, while the momentum indicator slides downward towards the average line.

The key levels expected to stand out in the upcoming sessions include the support level at $2.77, or the 50-day exponential moving average, the pivotal $3.00 area, as well as the resistance level at $3.32. Any breakout from this range may determine the direction of XRP in August.

As for the fall in spot trading volume, which reached 168 million dollars at the time of writing this report, it indicates that the exhaustion of sellers has begun. Therefore, an increase in speculative demand may have a positive impact on the price of XRP, reinforcing the bullish outlook towards the all-time high.

The CryptoQuant instant XRP bubble map supports the decline in instant trading volume, as shown in the chart. The decrease in trading volume indicates a reduction in liquidity, which is manifested in the decrease in the number of buyers and sellers. The price of XRP may consolidate near the support level at $3.00 before the next movement begins.