XRP falls below $1.54, leverage hits 7-month high as network activity jumps

XRP has dropped below its crucial 50-week exponential moving average (EMA) at approximately $1.54, following a rapid rally that saw prices reach as high as $1.70. This retracement has drawn attention from analysts and investors tracking XRP’s mid-term price action.

Analyst flags caution after weekly close

Chart analyst ChartNerdTA noted that XRP’s weekly close under the 50-week EMA acts as a “major caution signal” for the token’s outlook. The analyst stated that reclaiming the $1.54 level would invalidate the current bearish setup and shift sentiment more positively.

ChartNerdTA emphasized that a sustained move under the 50-week EMA increases the likelihood of further downside, and identified mid-term support levels where XRP could see relief if selling pressure persists.

Throughout August, XRP surged nearly 49%, climbing from below $1 to almost $1.70 before facing heavy resistance at the 50-week EMA. ChartNerdTA pointed out that while XRP managed to break above the 20-week EMA near $1.23, overcoming the 50-week level remained a challenge.

Key support and resistance levels

In technical analysis shared by ChartNerdTA, the $1.30 to $1.29 range has become an important mid-term support zone. A break below this area could expose XRP to further losses, with support around $1.18 to $1.10 considered the next potential target range.

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The $1 psychological level, along with $0.98, may also come into play if selling accelerates. TradingView data showed the 10-day EMA close to $1.33 and the 200-day EMA near $1.35, with XRP trading around $1.36 on Bitstamp at the latest update, representing a day loss of about 4.85%.

Technical indicators signaled mixed momentum. Moving averages continued to lean bullish, with 13 buy signals, one sell signal, and one neutral reading. The 14-period Relative Strength Index (RSI) cooled to about 65 following the rally, while the MACD remained positive but short-term momentum trended weaker.

Network activity and derivatives trends

On-chain data analyzed by Ali Martinez revealed that active addresses on the XRP Ledger soared by 654.71% over a two-week period, rising from 47,180 on August 10 to 356,070 by August 24, according to data from Santiment. This spike in address activity coincided with XRP’s move toward $1.70.

Increased address activity typically signals heightened participation in transactions on the XRP Ledger, an open-source blockchain platform designed for fast, low-cost cross-border payments and asset transfers. However, these spikes do not directly dictate short-term price direction.

Mini dictionary: XRP Ledger, also known as XRPL, is a decentralized public blockchain built by Ripple Labs with a focus on facilitating fast and cost-efficient global payments.

Meanwhile, derivatives data from CryptoQuant indicated a substantial rise in Binance’s XRP leverage ratio, now at 0.213—the highest in more than seven months. The leverage ratio represents the ratio of futures open interest to the amount of XRP held on the exchange, and higher reads can indicate increased risk or trader confidence.

XRP futures volume was reported near $6.4 billion in the last 24 hours—more than five times the spot trading volume—according to CoinDesk. Open interest stood at $3.45 billion, with long positions exceeding short positions on major crypto exchanges.

CryptoQuant highlighted that while rising leverage often signals optimism and greater risk appetite, it also raises the risk of liquidations if price direction unexpectedly reverses.

The combination of elevated leverage and increased network activity suggests both heightened opportunity and risk for XRP traders amid ongoing price volatility. Market watchers are now focused on whether XRP can reclaim $1.54 or if $1.30 support will be tested further in the coming sessions.