XRP has flashed an oversold signal on the hourly chart as profit-taking persists. The digital currency has continued to fall since early August, under pressure from overall market fears. The token dropped from its high of $3.38 hit on August 8, below investor watchlists and key daily moving averages.
The drop pushed the value of XRP beneath the daily SMA 50 of $2.99, which it maintained from early July. Market participants are observing this trend, as XRP enters its third consecutive day beneath the SMA 50. Early last Friday, the coin hit a low of $2.78, which might be an indication of potential short-term fatigue.
At the time of writing, XRP surged 3.87% to $3.01. The overall crypto market experienced $312 million in liquidations, as revealed by CoinMarketCap.
XRP Bulls Eye $2.88 Support Level
Crypto analyst Dhan pointed out $2.88 as a key golden retracement level. The line acts as a significant line separating potential bullish movement. Staying above may ignite a rise to $3.41 or beyond. The Fibonacci study confirms the line as a consolidation area and springboard for the breakout of XRP traders.
Momentum meters reflect stable trading volumes on major exchanges. Liquidity remains strong, an indication of position holding by the investor community. Re-taking of $3.00 by XRP might register an important recovery milestone. Market observers say this might restore confidence in the long-term trajectory of the token despite the recent losses.
CME Futures and Institutional Interest Surge
CME Group indicates XRP futures hit an all-time high $12 million open interest on August 18, exceeding 6,000 contracts. Open interest indicates market sentiment. Analysts propose the surge may catalyze a possible blow-off top segment.
The price targets are set from $8.00 to $16.00, which suggests a 400–430% recovery. History indicates XRP tends to experience long flat periods before explosive breakouts, which makes such moments plausible for traders.
A break above the $3.20 resistance might ignite a significant bull ascendency. Accumulations at these levels imply strong fuel for a vigorous rise. Market participants are eagerly waiting for confirmation, hoping to catch possible vertical price action, which may dictate the subsequent cycle.
