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XRP has reached a significant turning point once more, and the course of the upcoming trading sessions may decide whether it continues to consolidate or regains its bullish momentum. XRP is trading at about $2.86 on the chart, right up against two important technical barriers: a descending trendline that has been limiting upward movements for weeks, and the 100-day EMA.
XRP turning back
Since August, the 100 EMA has served as XRP’s pivot, frequently turning back price attempts to restore higher ground. In addition to breaking moving-average resistance, a clear breakout above this level would also be consistent with a potential breach of the downtrend line that was drawn from the highs of early September. Because of this confluence, the present region is among the most crucial bear/bull fighting grounds.
Volume conveys complex information. Participation has decreased since the July peak above $3.70 was sharply corrected, indicating hesitancy on both sides. While bears are depending on the series of failures to break through trendline resistance, bulls are waiting for confirmation of strength.
Nondecisive XRP move
With volume expansion, if XRP breaks decisively above $2.95-$3.00, it may incite short-term follow-through momentum toward $3.20-$3.40. Alternatively, XRP would be exposed to recurrent rejections from the 100 EMA and descending line. The 200 EMA (black line around $2.61) would be the likely target for a pullback, and a failure there might encourage even more severe retracements into the mid-$2.40 range.
The market has plenty of room to swing either way based on the breakout result, as indicated by the RSI at 46, which indicates neither overbought nor oversold conditions. Since the rally in July, XRP has been short at one of its most pivotal moments. Momentum could quickly return if the dual resistance is broken. Failure here could result in a protracted decline that lasts until October.
The $3.00 zone is where the next significant move will be confirmed, so traders should keep a close eye on it.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team