Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The much-anticipated move toward $3 appears to be getting farther and farther away, and XRP’s attempt to regain higher levels seems to be losing steam. The token is currently trading at $2.184, having fallen into a precarious position after losing steam during its most recent surge. A breakdown from a consolidation triangle is depicted in the daily chart’s structure, giving bulls little leverage to raise the asset.
Key reasons for drop
XRP’s $3 dream appears to have been dashed for the following three reasons:
- In a symmetrical triangle, which is frequently a continuation pattern that could result in a breakout or a breakdown, XRP was consolidating. Unfortunately, XRP was forced below the lower trendline as sellers took control.
At $2.95 to $3.00, the token is currently trading below important resistance zones, making that area a strong barrier. It is unlikely that these levels will be reclaimed in the near future unless XRP makes a swift recovery.
Ray Dalio Reveals What Will Make Crypto Attractive Alternative CurrencyBitcoin (BTC): Be Ready to Lose $100,000, Ethereum (ETH): Bounce Hinges on $4,000, Shiba Inu (SHIB): Awaiting Explosion or Zero Again?Ripple Mints More RLUSD. Is Top 5 Close?Saylor’s Strategy Increases Dividend Rate After Massive BTC Buy
XRP/USDT Chart by TradingView - The volume profile of XRP at the moment indicates waning interest, and volume tells the story of conviction. The decline in daily trading activity since mid-August indicates a lack of enthusiasm on the part of both buyers and sellers. Strong demand and inflows are required for XRP to rise to $3 or above, but neither is the case. Rather, the absence of involvement exposes the asset to additional downside risk.
Breakdown scenario
Indicating waning bullish momentum, the 50-day EMA has flattened and is starting to curl downward. At $2.77, XRP is just about holding onto support from the 100-day EMA. The 200-day EMA at $2.51, which would validate a more profound correction and disprove short-term bullish expectations, could be the next stop if this support fails.
It appears that the $3 target is currently crushed due to bearish technicals, declining volume and increasing moving average pressure. XRP would have to recover $3 on high volume in order to change sentiment, which is a difficult task given the current climate. Otherwise, there is still a chance that the path of least resistance will decline toward $2.50 before any significant recovery effort is made.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team