XRP Price Slides Despite Institutional Investment as Bearish Signals Strengthen
Despite several high-profile investments and bullish headlines, XRP is struggling to hold its ground. The token has dropped nearly 5% in the last 24 hours and over 8% for the week, as bearish technical signals continue to mount. Even with institutional backing—including a $300 million commitment from a Chinese AI company and a $121 million treasury raise involving Saudi-backed VivoPower—momentum has turned decisively negative.
Bearish Momentum Overshadows Bullish News
XRP's Relative Strength Index (RSI), a key momentum gauge, has plunged to 32.32—down sharply from 48.68 just a day prior. While not yet in oversold territory (below 30), the rapid decline suggests accelerating selling pressure. The last time XRP’s RSI dipped below 30 was in early April, meaning the token is now approaching levels where technical traders might start eyeing a potential rebound.
But for now, buyers are holding back.
DMI Paints a Bearish Picture
Adding to the bearish outlook, XRP’s Directional Movement Index (DMI) indicates a strong downtrend. The Average Directional Index (ADX) has surged to 34.78, up significantly from 27 the previous day, confirming a powerful trend—while the negative directional indicator (-DI) has climbed to 32, compared to a steep drop in the positive directional indicator (+DI), now at just 8.57.
This widening gap reveals that sellers are in clear control, and the strength of the downtrend is gaining momentum.
Multiple Death Crosses Signal Caution
Technical analysts are also watching XRP’s exponential moving averages (EMAs), which have now formed multiple "death crosses." These occur when short-term EMAs cross below longer-term ones—often seen as a signal of persistent downside pressure.
If current trends continue, XRP may test key support at $2.07. A break below this level could see the token dip under $2, a price not seen since early April. Conversely, if XRP finds buying interest and begins to climb, it will need to break through resistance at $2.26 to begin invalidating the current bearish trend. Further targets on a reversal include $2.36, $2.47, and $2.65—but only if accompanied by strong volume.
