XRP’s bullish momentum is weakening, with the token breaking its July uptrend line as broader crypto markets face uncertainty. As Bitcoin (BTC) continues to struggle below key resistance at $120,000, traders are growing cautious, with momentum indicators hinting at a possible bearish shift.
XRP Breaches Uptrend: Correction Ahead?
After rallying from $2.20 to over $3.60 in July, XRP had maintained a steady uptrend — until now. In the last 24 hours, that uptrend line was broken, a key signal that bullish momentum may be losing steam.
XRP is now trading around $3.44, moving in a choppy range between $3.35 and $3.65.
Adding to the concern, Bollinger Bands have widened, mirroring the volatility seen before XRP’s December 2024 correction. This expansion typically signals an impending breakout — often in the direction of the most recent move, which in this case, is down.
If support at $3.35 fails to hold, analysts warn of a deeper pullback, potentially revisiting lower Fibonacci retracement levels of the July rally.
Bitcoin Momentum Fades at $120K
Meanwhile, Bitcoin’s price remains stuck between $116,000 and $120,000, after briefly touching an all-time high above $123,000 on July 14. The daily MACD histogram is now flattening, and analysts at CoinDesk say this could mark the beginning of a bearish crossover.
The MACD’s weakening momentum, combined with flattening intraday moving averages, increases the risk of a downside break for BTC — which could drag altcoins like XRP lower.
Key BTC support levels to watch include $116,000, $115,739, and $111,965. Resistance sits at $120,000 and $123,181.
Outlook: Can XRP Rebound?
For now, XRP’s fate is closely tied to Bitcoin’s price action. While the longer-term trend from June remains intact for BTC, the break in XRP’s uptrend is a clear short-term warning sign.
If XRP bulls cannot reclaim support near $3.50, the next leg may be to the downside.
With volatility rising and momentum fading across the market, traders should stay alert for confirmation of trend breakdowns or reversals in the coming days.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.