XRP is facing renewed selling pressure after briefly slipping below the important $1 support level, putting traders on alert for a possible move toward $0.98.
The cryptocurrency has declined around 2.8% over the past seven days, trading close to $1 on Aug. 17. Weak daily momentum, continued capital outflows, and a broader bearish trend have made it difficult for buyers to regain control.
Technical indicators suggest that XRP remains vulnerable in the short term. The area between $0.98 and $0.975 is emerging as the most important support zone, while a recovery above approximately $1.037 could provide the first indication that selling pressure is beginning to ease.
XRP Price Struggles to Hold the $1 Level
XRP was trading around $1 on Aug. 17 after briefly falling below the psychological level during the latest market decline.
The token has experienced a significant correction from its previous cycle highs. Market analyst Crypto Patel noted that XRP has fallen roughly 73% from its cycle peak above $3, while the daily chart continues to form lower highs and lower lows.
Selling pressure became particularly noticeable during the first half of August.
XRP dropped from approximately $1.14 to around $0.98 before staging a modest recovery toward $1. However, buyers have not yet managed to establish a convincing daily close above nearby resistance.
The current weakness is part of a much larger decline. XRP traded above $2 earlier in the year before falling toward $1.40 in February. After several months of consolidation, selling pressure returned in June.
That makes the $1 area particularly important for XRP’s next move.
If XRP consistently closes below $1, sellers could gain additional confidence. On the other hand, a quick recovery above the level could suggest that the recent breakdown was temporary.
XRP Faces Resistance at $1.037
Daily technical indicators continue to favor sellers.
XRP remains below the middle line of its daily Bollinger Bands, currently positioned near $1.037. This level is important because the middle band can help indicate the direction of the short-term trend.
A recovery above $1.037 could therefore provide an early sign that momentum is improving.
Further resistance sits near the upper Bollinger Band at approximately $1.099, creating a broader resistance zone between roughly $1.04 and $1.10.
XRP has struggled to remain above this region since its early-August attempt to hold near $1.14 failed.
Until buyers can reclaim these levels, rallies could continue to face significant selling pressure.
$0.975 Emerges as Critical XRP Support
On the downside, XRP’s lower Bollinger Band is sitting near $0.975.
The token’s price has been trading close to the lower side of the Bollinger Band range, reflecting continued downward pressure.
Trading near the lower band can sometimes result in a short-term bounce as an asset becomes stretched to the downside. However, touching the lower Bollinger Band alone does not mean that a market bottom has been established.
For XRP, the $0.975 level is particularly important because it sits close to other areas where traders are watching for liquidity and support.
A decisive daily close below this area could expose lower price levels.
Capital Outflows Continue to Pressure XRP
Chaikin Money Flow provides another indication that XRP’s broader daily trend remains weak.
The daily CMF reading stands at approximately -0.17.
A reading below zero generally indicates that selling volume has been stronger than buying volume over the indicator’s measurement period.
This suggests that fresh capital has not yet returned strongly enough to support a sustained XRP recovery.
For the bullish outlook to improve, traders would likely want to see Chaikin Money Flow move closer to or above zero while XRP simultaneously recovers above the $1.037 resistance level.
Without those signals, short-term price recoveries could remain vulnerable to renewed selling.
XRP’s 4-Hour Chart Shows Early Signs of Buying
While the daily chart remains bearish, XRP’s shorter-term chart provides a slightly more encouraging picture.
On the 4-hour timeframe, XRP was trading near $1.001, while Chaikin Money Flow had climbed to approximately 0.09.
The positive reading suggests that some buyers have entered the market near the latest lows.
XRP has also moved slightly above the Ichimoku conversion line around $0.998 and the baseline close to $1.
These movements suggest that short-term momentum has started to stabilize.
However, XRP remains below the main Ichimoku cloud, meaning buyers have more work to do before the broader short-term trend can be considered bullish.
$1.017 Is the Next Important Short-Term Level
The upper boundary of XRP’s 4-hour Ichimoku cloud is positioned around $1.017.
A convincing 4-hour close above this level could provide an early signal that buyers are starting to regain control.
If XRP breaks above $1.017, attention could shift toward $1.037 and approximately $1.05.
A stronger recovery could eventually bring the $1.10 region back into focus.
However, failure to break above the cloud could leave XRP trading inside a narrow range between approximately $0.99 and $1.02.
Another rejection around $1.01–$1.02 could increase the possibility of XRP retesting its August lows.
XRP Liquidation Heatmap Highlights $0.98 Risk
Liquidation data also shows why the next XRP move could become volatile.
A three-day liquidation heatmap shows significant leveraged positions sitting close to the token’s current price.
On the upside, an important liquidity concentration appears near $1.011, with additional liquidity around $1.02.
If XRP pushes above $1.011, short positions could begin liquidating. These forced closures could add buying pressure and potentially help XRP move toward $1.02.
However, there is also considerable liquidity below the current market price.
The most significant nearby downside cluster sits around $0.98, close to the daily lower Bollinger Band at $0.975.
Additional liquidity is visible around $0.96.
This leaves XRP caught between important liquidity areas on both sides of the market.
What Happens if XRP Falls Below $0.98?
A clear loss of $0.99 could put the $0.98–$0.975 support zone under immediate pressure.
If XRP breaks through this area, leveraged long positions could be forced to close, potentially accelerating the decline.
The next important downside area would then be around $0.96.
A sustained move below $0.96 could strengthen the broader bearish structure and bring deeper support zones into focus.
For this reason, the $0.975 region could play a major role in determining whether XRP stabilizes around $1 or experiences another significant leg lower.
Analysts Remain Divided on XRP’s Bottom
Market analysts have different views on whether XRP is approaching a major bottom.
Crypto Patel has suggested that XRP could decline another 20% to 40% before establishing a significant long-term reversal.
The analyst identified approximately $0.85 to $0.65 as a potential long-term accumulation zone, while emphasizing gradual capital deployment rather than attempting to predict an exact market bottom.
Such a move would require XRP to first lose its current $0.975 support and continue through several lower liquidity areas.
The analyst has also discussed much higher long-term targets, including $3, $5, $7, and $10. However, those targets depend on XRP eventually establishing a confirmed reversal, something that has not yet appeared on the current daily chart.
Other analysts have taken a more optimistic position.
Analyst Gerla has pointed toward a possible long-term trendline test and bullish divergence on the Relative Strength Index.
A bullish divergence occurs when an asset’s price creates a lower low while a momentum indicator forms a higher low. Traders sometimes view this pattern as an early indication that downward momentum is weakening.
However, bullish divergence alone does not guarantee a reversal.
Can XRP Recover Above $1?
For now, XRP remains at a critical technical point.
The $1 level is likely to remain the main psychological battleground between buyers and sellers, but several nearby technical levels could provide better confirmation of the next move.
A recovery above $1.017 would improve XRP’s short-term structure, while reclaiming $1.037 could provide stronger evidence that buyers are returning.
On the downside, losing $0.98–$0.975 would strengthen the bearish outlook and could expose approximately $0.96.
If selling pressure continues beyond that point, the $0.85 region highlighted by some analysts could eventually become more relevant.
Until XRP decisively breaks one of these areas, traders may continue to see volatile price action around the $1 mark.
Disclaimer: This article is for informational and educational purposes only and should not be considered financial or investment advice.
