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XRP is in a dangerous spot, and the $2 mark is in grave danger. The daily chart has shown XRP fluctuating just above critical moving averages, making the price action nothing short of a battlefield. The asset is cautiously balancing close to the 50 EMA and the 100 EMA at $2.28. Technically speaking, these moving averages are typically regarded as important supports; however, at the moment they are aligning more toward a tightrope walk for XRP.
The 50 EMA crossing above the 100 EMA known as a golden cross, which usually indicates a change in momentum to the bullish side, is approaching. If that occurs, it might be a lifeline for XRP, providing the impetus required to break through the $2.50 resistance and possibly even take on $3 once more. However, it is not a given.
Because of the poor volume, there will probably be significant volatility following any breakout (or breakdown). XRP faces a quick decline below the $2 psychological barrier if it is unable to maintain these moving averages. For bullish traders waiting for XRP to confirm its return, that would be a setback. Even worse, a loss of midterm momentum would be confirmed if these EMAs were broken.
This could push the price back to the $2.07 support level or even lower, returning to the lows of the year. There is currently no obvious directional bias as the RSI remains in neutral territory at about 51. This could quickly change if the price drops below both moving averages and starts a selling wave or if the golden cross is confirmed.
The message is clear to traders and investors: XRP is in a make-or-break situation right now. In the absence of a distinct golden cross to revitalize the market XRP may have to bid farewell to $2 for the foreseeable future. The fight for XRP's future is currently being fought in those EMAs, so pay special attention to them.
U.Today Editorial Team
Vladislav Sopov