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As XRP finds it difficult to sustain its upward momentum, its recent rally is slowly becoming a fakeout. The recent breach of significant resistance levels by XRP raises questions regarding the sustainability of its upward trajectory due to bulls' lack of follow-through. By pushing above the 50-day exponential moving average (EMA), XRP has demonstrated strength in recent days.
A pullback that indicates a lack of conviction among buyers has been caused by the rally's current strong resistance around the $2.80 level. The lack of substantial trading volume adds even more uncertainty to the price action of XRP. The general market sentiment, which is still cautious despite the mixed performance of the main cryptocurrencies, is to blame for the drop in upward momentum.
Although Ethereum and Bitcoin are both maintaining their support levels, the market as a whole has been unable to produce a clear bullish trend. It seems that this hesitancy is hurting XRP and keeping its recent gains from continuing strongly. The next support zone at $2.50 is where XRP may retrace if it is unable to regain the $2.80 mark in the upcoming days. The 100-day EMA and the $2.25 region could see a more significant correction if this level is broken.
Alex DovbnyaConversely, if buyers take back control and XRP closes above $2.80 with significant volume, a possible rally toward $3.00 and higher might occur. According to the current consolidation phase, traders are still unsure of what XRP will do next. It is crucial to keep an eye on the bulls' lack of conviction because it may determine whether XRP keeps its bullish structure or goes through another stage of price weakness.
In order to assess the possibility of a long-term recovery, investors should keep a careful eye on volume trends and important support levels.
Dan Burgin
Vladislav Sopov