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The recent unsuccessful attempt by XRP to recover above important resistance levels has left it displaying concerning signs of exhaustion. The asset, which is currently trading close to $2.65, seems to be losing its bullish momentum as sellers slowly take back control.
XRP's decisive outlook
XRP’s short-term outlook may be turning decisively bearish, given its inability to maintain momentum above the 200-day EMA and break through the 50-day EMA. Following a brief recovery from the severe sell-off in October, XRP attempted to move toward the $2.75-$2.80 range before being quickly rejected. This move has since led to selling pressure from traders anticipating a continuation of the downward trend.
A distinct pattern of lower highs has been formed by XRP’s trend since August, and the rejection at this level is precisely in line with the descending resistance line. Usually, this price action comes before a more significant correction, particularly when it is coupled with dwindling trading volume and feeble new capital inflows.
In which zone is it?
Although the RSI of 53 indicates neutrality, the larger picture shows that bulls have not been able to hold onto key zones, and momentum is waning. As a typical early warning indicator of an impending sell-off, volume data indicates that enthusiasm has been waning.
If XRP is unable to maintain above $2.55, the psychological $2.00 mark, which may serve as both technical and psychological support if the decline quickens, will come next in line. The failed breakout above the 100-day EMA (orange line) suggests a lack of inflows, which is typically a sign of strong bearish continuation from a structural perspective.
Without fresh buying activity or outside forces, XRP might be preparing for a sharp decline to $2. Right now, the bears are in a better position. The chart is obviously weak, momentum is declining and the EMA cluster rejection suggests that XRP’s brief recovery may be coming to an end. A decline to $2.00 appears more likely unless bulls swiftly regain $2.80.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team