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As it struggles to sustain momentum following an initial breakout, XRP's recent price action points to a shift toward a potentially volatile trend. The asset has encountered resistance around the $2.70 level after a period of consistent growth, and it has been unable to maintain above the level. Unfortunately, it sends a clear signal to the rest of the market: investors are not too confident about XRP's future.
The market is exhibiting signs of hesitancy, with buyers apparently unable to keep up the pace required for a full-scale breakout despite XRP's prior bullish structure. A bearish reversal could be confirmed if the 50-day EMA, which is currently at $2.65, breaks below the critical support level. The next important support level to keep an eye on is $2.25, which has served as a starting point for XRP rallies in the past.
XRP needs to recover and maintain above $2.75 in the upcoming days for a bullish scenario to materialize. A successful retest of this level might pique interest again and cause the price to move closer to the psychological $3.00 mark. However, the asset may move toward lower support zones if there is insufficient buying pressure. As volume indicators point to a drop in active trading interest, the market's attitude toward XRP is still cautious.
Alex DovbnyaSince the asset is neither overbought nor oversold, its RSI level, which is approximately 45, allows for movement in either direction. XRP may test lower support at $2.25; if selling pressure increases, a break below that could push the price back toward the $1.75 area.
The next move of XRP will probably depend on the overall momentum of the market; the lack of the volume and the overall conviction is more likely to create a problematic instance, where XRP is not facing any pressure and finding no support either.
Dan Burgin
Vladislav Sopov