XRP: Worst Just Happened With Price

XRP is currently  switching from a neutral to bearish trend on the market. The asset has now established a distinct lower high, a classic indication of a bearish reversal after battling for weeks to maintain momentum. This change formally marks the return of XRP to a midterm bear market phase, as many traders had feared. The market structure indicates that the worst may not be over as XRP is currently trading at about $3.03, having already lost over 1% in the past day.

XRP's rally possibilities

Bulls are losing strength as sellers regain control, according to the lower high formation against declining volume. XRP runs the danger of breaking the $3.00 psychological support if this trend persists — most likely today or during the following trading session. The token might fall more quickly if there is a confirmed drop below that level, possibly moving it toward $2.90 and even $2.81 (200 EMA). 

Data from on-chain and derivatives supports the outlook. Long positions suffered the most from the $6.4 million in liquidations over the past day. The fact that funding rates are moving against bullish momentum suggests that speculative bets are rapidly winding down, even though open interest on major exchanges is still high. 

Optimism for XRP

As far as we can see now, XRP has little cause for optimism unless it can regain confidence in the $3.10-$3.20 range. The token is susceptible to a protracted decline in the absence of that recovery. Long term, this collapse might pave the way for a more significant reversal, wiping out a large portion of the gains made this summer. 

The worst case scenario for XRP has come to pass: declining demand, a confirmed lower high and an impending breakdown below $3.00. For XRP bulls, the midterm outlook is essentially as bearish as it gets, especially if that support is broken as the market is probably getting ready for another leg down. It appears that XRP's bear market will get worse unless there are significant inflows again.