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XRP has taken a serious hit after losing its critical 200-day EMA support level, which is a major clue to the long-term trend direction. If the asset breaks below this level and the moving average cluster, a more profound bearish trend may be developing. A downtrend in the market is indicated when an asset crosses below its 200-day moving average, which frequently deters buyers and increases selling pressure.
The accompanying chart highlights the alarming technical picture. All three of the major moving averages — the 50, 100 and 200 EMAs — which are now resistance levels, are currently being traded below by XRP. These moving averages, which were once helping the price, now pose serious obstacles for XRP to get past if it wants to recapture bullish momentum.
As it becomes more and more obvious that there is no buying interest, the fact that XRP is trading below these indicators indicates a significant decline in market confidence. The recent price decline, which has been accompanied by low volume, is another factor adding to the bearish sentiment.
Alex DovbnyaThe volume indicator has stayed low, indicating that investors and traders are not inclined to buy XRP at these prices. It might be difficult for XRP to stop falling if there is not enough volume to sustain any possible rebound. Going forward, $0.48 represents the next significant support level to keep an eye on.
The short-term future of XRP will be significantly influenced by this level. The price may indicate a deeper correction and potentially lead to more selling pressure if it breaks below this support level. However, XRP may lay the groundwork for a future rebound if it is able to maintain this level of support.
A bounce, though, does not seem likely unless there is a sharp increase in buying volume given the current bearish market structure. The RSI has not yet hit the threshold values that signify a reversal. Consequently, there are not any clear signs of a reversal in sight, even though XRP may be getting close to oversold territory.
Tomiwabold Olajide
Gamza Khanzadaev