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Following what now seems to be a fakeout breakout attempt, XRP's recent price action is displaying serious warning indicators. The token has retreated into weakness rather than continuing on its upward trajectory, and the structure suggests that if things continue to go against the bulls, it may drop to the $2 mark.
XRP's momentum could not build up
The chart indicates that XRP is having difficulty maintaining momentum above $3 as it struggles beneath descending resistance lines. The rejection swiftly became a bearish reversal, despite traders' momentary hope that the move higher would lead to a breakout.
The inability to recover the 50 EMA and 26 EMA indicates that sellers continue to have momentum, and moving averages are now starting to slope lower. This indicates that it will be difficult for bulls to regain control.
The fact that XRP has tested the 100 EMA but has not produced a compelling reaction adds to the pressure. Comparing the volume to previous surges, it has also stayed relatively low, suggesting that bulls are not strong enough to hold higher levels.
Unsustainable movement
The next significant support if the price does not settle here is in the $2.60 region. Losing this level could hasten the decline even more in the direction of $2, a zone that corresponds with areas of prior accumulation and psychological support.
With Bitcoin’s inability to sustain recent gains and wider altcoin weakness feeding the negative outlook, market sentiment also seems brittle. The likelihood of a further decline is still high unless XRP can recover $3 with significant buying volume.
The $2.80-$2.90 range is the battleground for traders to keep an eye on. A clear failure in this area validates the fakeout and makes the way lower. Bulls must move fast to regain momentum, but the current outlook is in favor of sellers because EMAs are moving against them.
Given how vulnerable XRP looks right now, the market should brace for the prospect of a retracement of the token back toward the $2 mark in the upcoming weeks, barring an immediate reversal above $3.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team