The crypto market has entered a consolidation phase after a notable rebound over the past week. Bitcoin rose above $80,000 during the week before pulling back to around $78,000. Market participants are now turning their attention to the U.S. core PCE inflation data and NVIDIA’s earnings report, both of which are expected to continue influencing short-term risk sentiment.
This pullback in XRP has been particularly pronounced. According to CoinMarketCap data, XRP fell 6.23% over the past 24 hours to approximately $1.38, performing the weakest among the top ten crypto assets by market cap. However, over the past seven days, XRP has still risen 35.55%, ranking second only to Hyperliquid and significantly outperforming major assets like Bitcoin and Ethereum.
The previous rally was too rapid.
The recent pullback in XRP is related to its rapid rise in the preceding days. From August 18 to 22, XRP surged quickly from approximately $1.00 to a intraday high near $1.69, briefly approaching the $1.70 mark. Subsequently, as Bitcoin retreated from above $80,000 and altcoins overall came under pressure, XRP began to give back some of its earlier gains.
From a funding perspective, institutions have not significantly withdrawn. The ETF tracking XRP’s price has recorded net inflows for nine consecutive trading days, suggesting that current pressure is more likely due to the liquidation of highly leveraged positions rather than a mass exodus of long-term capital.
$1.40 becomes a short-term focus
According to intraday data cited, XRP opened at $1.4344, reached a high of $1.4513, then pulled back to around $1.3790. The price has since returned to the $1.40 level, which previously served as resistance before turning into support following last week’s breakout.
This level has drawn attention because XRP previously rebounded above its 200-day exponential moving average at this point. If the $1.40 level holds, the current movement appears to be a normal pullback after an uptrend; if the daily candle closes below it, selling pressure may push prices to test the lower support range formed after the August breakout.
The market awaits two catalysts.
Technical signals are currently mixed. The Relative Strength Index (RSI) is at 66.7, remaining in the overbought range but nearing levels where some traders tend to take profits. The Average Directional Index (ADX) stands at 44.1, indicating that the current trend remains strong, with the positive directional line still above the negative directional line.
However, the short- to medium-term moving average structure has not yet fully recovered. As mentioned in the article, the 50-day moving average remains below the 200-day moving average, indicating that the broader downtrend structure for XRP has not been fully reversed, despite the price experiencing its steepest rally in months.
For the broader altcoin market, whether Bitcoin can hold the $77,000 to $78,000 range remains critical. If macroeconomic data and NVIDIA’s earnings continue to boost risk appetite, XRP may have a chance to stabilize at its current support level; if the market weakens again, tokens with significant prior gains could face further selling pressure.