Brokers from Kepler Group dive into XRP’s latest price action, as the token slips below one of its most closely watched technical levels of the year despite continued strength in network activity.
XRP Falls Below Key $1.05-$1.07 Support Zone
XRP is currently trading just above the psychological $1 mark, effectively invalidating one of its most significant support structures of the year. The decline stands out because it comes even as XRP Ledger activity remains comparatively elevated, a divergence that has caught the attention of technical analysts.
After dropping below the $1.05 to $1.07 range that had consistently offered support during the most recent consolidation phase, XRP now trades near $1.006. The short term moving average, sitting close to $1.065, had previously reinforced this zone, but rather than reclaiming it, XRP has continued printing lower highs and lower lows in recent sessions.
$1 Now Serves As The First Line Of Defense
With the prior support zone broken, the $1 level has taken on outsized importance as the next meaningful technical threshold. A sustained break below this mark would carry considerably more weight than a routine daily decline, potentially opening the door to a deeper correction.
Looking further down, there isn’t much obvious support beneath current levels. Should selling pressure accelerate, the next plausible demand zone sits around $0.95, followed by roughly $0.90.
The broader moving average structure reinforces this cautious outlook, with larger averages positioned significantly higher near $1.178 and $1.370, while XRP remains capped beneath the shorter term averages closer to $1.065 and $1.082.
Momentum Indicators Point To Further Room For Decline
Since all of these moving averages currently sit above the market, any attempt at a recovery is likely to encounter multiple layers of resistance before gaining real traction. Compounding this cautious picture, momentum continues to weaken across the board.
The daily RSI has dropped to approximately 34.2, placing it close to oversold territory without quite reaching the traditional 30 threshold typically associated with extreme selling conditions.
This leaves some technical room for further downside before XRP would be considered stretched from a momentum standpoint, suggesting the current corrective phase may not yet be fully exhausted.
Network Activity Tells A Different Story
Interestingly, the recent price weakness does not appear to stem from declining network participation.
According to XRP Ledger data, the network recorded roughly 207,028 active users on August 10, a notable increase from the 100,000 to 120,000 range observed in mid July. This steady climb in on chain activity paints a picture of growing engagement even as the token’s market price struggles.
This creates a clear disconnect between underlying network usage and short term price performance.
Spot demand simply hasn’t kept pace with the rise in active users, leaving the price unable to benefit from the improving fundamental backdrop. While sustained network growth can support a longer term bullish thesis, it offers no guarantee that price appreciation will follow in the near term, particularly when technical indicators remain firmly bearish.
What Would Signal A Shift In Structure
For XRP, the clearest signal that the current breakdown is being seriously contested would be a recovery back into the $1.065 to $1.082 range, the same zone that previously acted as support before giving way. Reclaiming this area would suggest buyers are stepping back in with enough conviction to challenge the prevailing downtrend.
Until such a recovery materializes, the broader technical structure remains firmly tilted to the downside. The failure of the previous support zone has elevated the importance of the $1 level considerably, transforming what might otherwise be viewed as a routine psychological marker into a genuine line in the sand for the token’s near term trajectory.
Conclusion
XRP’s recent price action highlights a market caught between deteriorating short term technicals and an improving fundamental backdrop driven by rising network activity.
With the $1.05 to $1.07 support zone now broken, the $1 psychological level stands as the most immediate battleground, with further downside toward $0.95 and $0.90 remaining plausible should selling pressure persist.
Traders following XRP strategies should watch closely for any sustained move back above $1.065, as this would represent the first meaningful sign that buyers are willing to contest the current downtrend, while continued weakness below $1 would confirm that the broader corrective structure remains firmly intact.