XRP Trading Below $3 Amid Concerns of Meme Coin Behavior
XRP is currently trading below $3 after being repeatedly rejected above $2.8. Chart analysis from crypto analyst MadWhale indicates a potential decline to $2.4 due to pressure within a descending channel.
XRP’s Psychological Cycle Resembles Meme Coins
MadWhale identified a psychological cycle similar to those in meme coin markets, which includes:
- Excitement driven by social media buzz
- Greed as traders rush in
- Social proof amplified by influencers
- Panic selling by small traders following a correction
- Capitulation where whales buy back at lower prices
This cycle creates retail fear and greed, leaving smaller traders with losses while whales capitalize on the volatility. Technical tools like Volume Profile, RSI, and the Fear and Greed Index can help identify these patterns.
Descending Channel Points to $2.40 Target
The descending channel has shaped XRP’s price action since July 19, leading to lower highs and repeated rejections around $3. MadWhale projects a 14% decline to the major support level at $2.40. For any rebound attempts, XRP must first overcome the $3 resistance.
At present, XRP is trading at $2.80, reflecting a 1.4% increase over the past 24 hours.
