- XRP’s recovery faces resistance at the 100-day EMA and descending trendline near $2.83, which will test bullish momentum.
- A bounce from the $2.60 level is providing support, but XRP must regain $2.90 to suggest a true recovery.
- Momentum indicators show weak bullish signals, and the volume on the rebound remains low, raising doubts about a sustained rally.
XRP has seen a modest recovery from the $2.70 level, a point where selling pressure briefly eased. Currently, the cryptocurrency finds itself facing a critical juncture as it tests key resistance levels. Market sentiment remains divided, with traders wondering if this bounce marks the beginning of a sustained recovery or if it’s simply a temporary relief within a larger downtrend.
At present, XRP is trading around $2.78, still below the crucial 100-day exponential moving average (EMA) at $2.83, as well as the descending trendline resistance. These two obstacles stand as immediate challenges for the bulls, who are now under pressure to break through this resistance zone. Until XRP can convincingly reclaim the $2.90 to $3.00 range, many will view the current recovery as just a short-term rally.
Decline Below $2.88 Raises Concerns
The recent drop below $2.88 marked a significant development for XRP, as it lost a crucial mid-range support level. This fall caused the price to dip further to $2.60, a level at which the 200-day EMA served as a solid foundation, leading to a rebound. While short-term momentum remains in the hands of the bears, the longer-term outlook remains intact as long as XRP holds above the $2.60 support.
Momentum indicators for XRP provide a mixed outlook. The RSI, currently at 44, suggests neutral to weak momentum. There are no clear signs of bullish divergence, and the volume accompanying the rebound has been underwhelming, raising doubts about the strength of this recovery. The lack of strong buying pressure makes it difficult to determine if the bounce will turn into a more sustained upward move.
Critical Resistance Ahead
If XRP manages to break above the $2.90 resistance level, it could potentially target $3.10 and retest the descending resistance line near $3.20. A move beyond these levels would shift market sentiment and suggest the current bounce could be the beginning of a broader recovery. However, failure to reclaim the $2.83 to $2.90 range could result in further downside, potentially pushing XRP back toward the $2.70 level or even revisiting the $2.60 support zone.
XRP’s near-term future remains uncertain, with the $2.83 to $2.90 range proving to be a decisive factor in determining whether the asset can break free from its downward trend or if further losses are ahead.
