XRP fell below $1.40, and support points to $1.31 after the triangle pattern broke

XRP fell below the US$1.40 mark, with key support focusing on US$1.31

This week, XRP showed a significant downward trend after breaking through the convergent triangle, and the price slipped below US$1.40. The current trading range for the token is between US$1.34 and US$1.37, reflecting continued selling pressure and uncertainty about short-term price movements.

Technical Analysis and Analyst Views

The latest decline in XRP began after prices encountered rejection in the $1.43 to $1.45 region. Analyst XAUApex at TradingView pointed out that XRP broke downward from the symmetrical triangle, describing this new pattern as "low highs, low lows." The move marks a shift in market structure in the short term, but analysts warn that it has not yet confirmed a long-term downward trend. If prices can continue to rebound and stay firm above the $1.43 to $1.45 range, the current bearish argument may weaken.

XRP has previously hit recent highs just below $1.70, but has since faced resistance as it recovers the $1.40 level. Previous gains failed to establish a solid upward trajectory, exacerbating concerns among some traders.

Key Support and Recovery Scenarios

US$1.31 is the first support level that traders pay close attention to. According to Camarilla Pivot Point data, S1 technical support is at $1.3143. Short-term moving averages, such as the 30-cycle moving average, are currently near $1.327 to $1.338, slightly above current prices. Analyst Vandell33 observes that XRP is consolidating between the 50-week and 200-week moving averages-a configuration that historically has often led to downward breakthroughs.

If selling intensifies, prices could target the $1.17 area, where the 100-cycle simple moving average is closely aligned with $1.168. Analyst Setupsfx_pointed to a possible recovery scenario: After falling to about $1.1673, a bullish reversal followed by a close above that level for two consecutive days, followed by a higher low, which could lay the foundation for a reversal. However, if it falls below US$0.9929, this bullish setting will be denied.

On-chain data and whale activity

On-chain indicators support the bearish sentiment of the past few weeks. Analyst Ali Martinez observed that XRP fell nearly 20% in three weeks, slipping from $1.70 to about $1.35, as large holders either sold or transferred about 90 million tokens in the past week.

Wallet address activity on the XRP ledger also dropped sharply, from approximately 388,000 daily active addresses to only 38,000, a drop of more than 90%.

Historical transaction data shows that approximately 2.29 billion tokens were exchanged around US$1.35, forming an important accumulation area. Market indicators show a mixed outlook: the 14-cycle Relative Strength Index (RSI) hovers at 53.6, reflecting neutrality, while other momentum signals and MACD detect continued selling pressure. The latest technical count showed 6 sell signals, 9 neutral signals and 11 buy signals, underscoring the market's hesitation.

If XRP regains US$1.38, there may be new signs of growth, as technical and on-chain analysis suggests that the move could pave the way for a push to US$1.60 to US$1.68. Based on Camarilla levels, the resistance levels ahead are $1.445,$1.510 and $1.575, respectively, and the Fibonacci R1 indicator is $1.626.

Ripple's stablecoin vision and regulatory background

Ripple, as the financial technology company behind XRP, has attracted much attention due to its plans for a new stablecoin in RLUSD. According to comments from Ripple stablecoin executives, the company is designed to serve the financial pool of companies that handle transactions up to $13 trillion per year. Tony Edward, host of Thinking Crypto, pointed out that this goal puts Ripple's stablecoins directly in competition with large financial infrastructure platforms.

Small Dictionary: RLUSD

RLUSD is Ripple's stablecoin initiative, which aims to provide institutions and companies with dollar-pegged digital assets. Stable coins like RLUSD are usually backed by fiat reserves and enable efficient, low-cost transactions on blockchain networks.

Looking ahead, the U.S. Senate will vote on September 15 on the CLARITY Act, which aims to shape the U.S. digital asset regulatory environment.

Currently, XRP is still in a range market structure, with the support levels of $1.31 and $1.17 attracting the most attention from traders and analysts.