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Once again, XRP is exhibiting signs of waning momentum as it teeters perilously close to the $2.00 price mark. The asset is still struggling beneath important moving averages and trendline resistances, indicating that bears are still in control despite efforts to hold their ground and mount a breakout from its declining trend.
The graph, which is contained within a descending channel, clearly shows XRP's ongoing downward trend. The 26 EMA, which remains a recalcitrant dynamic resistance level, has been the point at which the most recent rally lost steam after multiple unsuccessful attempts to break above this structure.
Because the 50 EMA is also visible above, XRP is under layered pressure, which makes short-term upward movement increasingly unlikely. A lack of strong volume is another factor contributing to bearish concerns. Even though the price is currently trading close to $2.10, this level is vulnerable due to the lack of substantial buying interest. XRP may quickly drop toward the next important support zone, which is close to $1.95 and may even return to the lower bounds of the descending channel if bulls are unable to hold the psychological $2.00 support.
The RSI is in neutral territory at 47.74, with no bullish divergence or momentum to indicate an impending reversal. Price action indicates that there is pressure on consolidation, which usually occurs before a breakdown, in weak market conditions. The most likely scenario is still bearish unless there is a major catalyst or a change in the overall state of the market that favors XRP.
A deeper correction would be all but confirmed if the market were unable to recover and hold above the $2.13-$2.22 zone. XRP has reached a critical juncture. The asset is vulnerable to another leg down since key resistance levels have not been broken, and market participation is decreasing. The next few days will be crucial for XRP traders and holders because a steep decline could occur if the $2 support breaks.
Vladislav Sopov