XRP Drops Below Key Support as RSI Flashes Oversold Signal

Key Insights

XRP has traded below the 50-day SMA for three consecutive sessions, closing as low as $2.78 amid extended market losses.

RSI on XRP’s hourly chart dipped under 30, indicating oversold conditions and a potential setup for a technical price rebound.

Ripple signed a new MOU with SBI VC Trade to distribute RLUSD in Japan, underscoring its push for global stablecoin adoption.

XRP continued its multi-week decline, falling to $2.78 in early Friday trading. This drop marks the third consecutive session below its 50-day simple moving average (SMA) of $2.99. The cryptocurrency had maintained levels above the SMA since early July but began a steady downturn after reaching a high of $3.38 on August 8. The latest price action reflects continued selling pressure in the broader digital asset market.

Technorth indicators are illustrating that XRP may have descended into oversold areas on the hourly scale. The relative strength index (RSI) of price momentum dropped under the 30 mark. This degree is usually taken as an oversold area, and we would anticipate a relief rally at least in the short term. Market observers are keeping an eye on reinforcement of this signal before they consider the thought of reversal.

The Macro factors and Broad Market Impact

The liquidations occurring in the cryptocurrency market are not spared, as the movement of the price of RCRP is also affected. When quantifying the liquidation of positions in the sector in the last 24 hours, according to data presented by CoinGlass, more than US$312 million in positions were closed. The wider risk-off mood has been catalyzed by macroeconomic uncertainty amid the upcoming speech of the Federal Reserve Chair, Jerome Powell, at the Jackson Hole event. The speech by Powell can be a clue to the direction of monetary policy of the Fed in the near future since he has remaining time in office up to May of 2026.

In the midst of market turbulence, Ripple Labs confirmed that it will be strengthening its footprint in Asia. SBI VC Trade, a subsidiary of Japanese financial giant SBI, signed a memorandum of understanding with the company. The partnership is aimed at serving to enable the transfer of Ripple USD (RLUSD) a stablecoin under development on the XRP ledger and on the Ethereum blockchain. This is a sign that Ripple wants to expand to foreign markets as it seeks to diversify due to the fluctuations in regulations and the markets.

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