XRP extended its recent losses on July 28, dropping nearly 5% as selling pressure pushed the token below the important $1.05 support level. The decline came amid a broader risk-off mood in financial markets, while a wave of long liquidations accelerated the sell-off.
Although XRP has entered oversold territory on shorter timeframes, technical indicators suggest the market remains under bearish pressure. Traders are now watching whether buyers can defend the $1.00 region or if the downtrend will continue.
XRP breaks below critical support
According to market data, XRP was trading around $1.05 after falling from roughly $1.11 earlier in the session.
The latest decline confirmed a double-top pattern that had been forming on the four-hour chart. XRP failed to break above the $1.15–$1.17 resistance area on two separate occasions before sellers regained control.
The breakdown below the neckline near $1.054 confirmed the bearish pattern, exposing the psychological $1.00 level as the next major support.
Oversold conditions emerge
The sharp decline pushed XRP’s 4-hour Relative Strength Index (RSI) down to 25.9, placing the token in oversold territory.
An RSI below 30 often suggests that selling has become excessive, which can sometimes trigger a short-term rebound. However, oversold conditions alone do not signal a trend reversal.
For sentiment to improve, XRP would first need to reclaim the broken $1.054 support level and establish a higher price low.
Liquidations added to selling pressure
Leverage amplified XRP’s decline as the price moved through several heavily traded liquidation zones.
As XRP dropped below $1.09 and $1.08, many leveraged long positions were automatically closed, increasing selling pressure.
Current liquidation data highlights several important price zones:
- Support: $1.043–$1.05
- Resistance: $1.062
- Resistance: $1.075
- Resistance: $1.097
If XRP manages to rebound, these resistance levels could slow any recovery as traders exit losing positions.
Technical indicators remain bearish
Several technical indicators continue to favor the bears despite the oversold reading.
Bollinger Bands
XRP closed below the lower Bollinger Band, reflecting unusually strong downside momentum.
While prices occasionally rebound after moving outside the lower band, the indicator mainly confirms the strength of the recent sell-off.
Chaikin Money Flow
The Chaikin Money Flow (CMF) indicator currently stands at -0.12, suggesting that capital continues flowing out of XRP rather than into it.
MACD
The Moving Average Convergence Divergence (MACD) indicator also remains bearish, with the MACD line staying below its signal line.
Together, these indicators suggest sellers continue to control short-term momentum.
Key price levels to watch
The immediate support zone lies between $1.043 and $1.05.
If buyers fail to defend this area, XRP could move toward:
- $1.02
- $1.00
On the upside, resistance levels are located near:
- $1.054
- $1.075
- $1.098
- $1.11
A sustained move above these levels would improve the short-term technical outlook.
Broader market sentiment weighs on XRP
XRP’s decline also coincided with weakness across global financial markets.
Technology stocks in Asia experienced heavy losses, encouraging investors to reduce exposure to higher-risk assets ahead of the upcoming Federal Reserve policy meeting.
At the same time, uncertainty surrounding U.S. cryptocurrency legislation added to cautious market sentiment after lawmakers delayed further progress on the Digital Asset Market Clarity Act.
These broader macroeconomic developments have increased volatility across both traditional financial markets and digital assets.
Outlook
XRP remains under pressure after breaking below the key $1.05 support level, with technical indicators continuing to favor sellers despite oversold conditions.
A short-term rebound remains possible if buyers defend the current support zone, but reclaiming $1.05 and then $1.10 will be essential to weaken the bearish outlook.
Until that happens, traders are likely to remain cautious, with attention focused on the $1.00 psychological support and upcoming macroeconomic events that could influence broader cryptocurrency sentiment.
