XRP of Ripple is facing continuous selling pressure, trading in a descending parallel channel since August 2. Although it has attempted to break out of this bearish structure multiple times, market sentiment remains predominantly negative, hindering any sustainable upward movement. With balances on exchanges increasing and strong selling activity, XRP may be preparing for further losses this month.
XRP faces difficulties as bears control the price
A descending parallel channel forms when an asset continuously creates lower highs and lower lows within two parallel trend lines. This structure reflects a sustained decrease in buying pressure, as retail sellers consistently overpower the bulls' attempts to push the price up.
The daily chart of XRP/USD shows that it has maintained a trend in this channel since August 2, reflecting the ongoing sell-off that has negatively impacted its price.
XRP's descending parallel channel | Source: TradingViewIn the past few weeks, this token has made several attempts to break out of the bearish structure. However, each attempt has faced strong sell-offs, preventing any successful breakout and keeping XRP in a bearish trend.
Bearish outlook as XRP balance on exchange rises
The XRP balance on exchanges is increasing, confirming the growing distribution among market participants. According to data from Glassnode, XRP reserves on exchanges have risen by 2% since August 27, indicating a rising trend of profit-taking among token holders.
XRP balance on exchanges | Source: GlassnodeThe balance on the exchange measures the total amount of XRP held in exchange wallets at any given time. When this balance increases, it indicates that investors are transferring XRP from personal wallets to the exchange, often with the intention to sell.
As of now, there are 3.32 billion XRP worth 9.3 billion USD being held in exchange wallet addresses. Such a high exchange balance means that there is a lot of liquidity available for trading, which could push the price down if demand for XRP does not keep up.
Moreover, the structure of the Moving Average Convergence Divergence (MACD) indicator for XRP also supports the bearish outlook. At the time of writing, the MACD line of XRP (in green) is below the signal line (in orange) and has maintained this position since July 25.
XRP's MACD | Source: TradingViewThe MACD indicator helps identify trends and momentum in price movements. It assists traders in detecting potential buy or sell signals through the intersections between the MACD line and the signal line.
When the MACD line of an asset is below the signal line, this indicates that buying pressure has decreased, further reinforcing the likelihood of a bearish continuation for XRP in the short term.
Support level $2.63 in sight as bears gain the upper hand
XRP is at risk of falling to $2.63 if selling pressure continues to increase. If the bulls cannot defend this support level, it could lead to a deeper drop towards $2.39.
XRP Price Analysis | Source: TradingViewHowever, XRP also has the potential to recover and rise above the $2.87 level if buying pressure returns to the market.
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What to expect from the XRP price in September
XRP of Ripple is facing continuous selling pressure, trading in a descending parallel channel since August 2. Although it has attempted to break out of this bearish structure multiple times, market sentiment remains predominantly negative, hindering any sustainable upward movement. With balances on exchanges increasing and strong selling activity, XRP may be preparing for further losses this month.
XRP faces difficulties as bears control the price
A descending parallel channel forms when an asset continuously creates lower highs and lower lows within two parallel trend lines. This structure reflects a sustained decrease in buying pressure, as retail sellers consistently overpower the bulls' attempts to push the price up.
The daily chart of XRP/USD shows that it has maintained a trend in this channel since August 2, reflecting the ongoing sell-off that has negatively impacted its price.
Bearish outlook as XRP balance on exchange rises
The XRP balance on exchanges is increasing, confirming the growing distribution among market participants. According to data from Glassnode, XRP reserves on exchanges have risen by 2% since August 27, indicating a rising trend of profit-taking among token holders.
As of now, there are 3.32 billion XRP worth 9.3 billion USD being held in exchange wallet addresses. Such a high exchange balance means that there is a lot of liquidity available for trading, which could push the price down if demand for XRP does not keep up.
Moreover, the structure of the Moving Average Convergence Divergence (MACD) indicator for XRP also supports the bearish outlook. At the time of writing, the MACD line of XRP (in green) is below the signal line (in orange) and has maintained this position since July 25.
When the MACD line of an asset is below the signal line, this indicates that buying pressure has decreased, further reinforcing the likelihood of a bearish continuation for XRP in the short term.
Support level $2.63 in sight as bears gain the upper hand
XRP is at risk of falling to $2.63 if selling pressure continues to increase. If the bulls cannot defend this support level, it could lead to a deeper drop towards $2.39.
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