Key Insights:
- XRP’s rejection at major EMAs signals a potential continuation of its downward trend toward the $2.00 psychological support zone.
- Declining trading volume and a pattern of lower highs since August indicate weakening momentum and fading investor interest.
- The RSI near neutral levels masks underlying bearish pressure as sellers gain ground and buyers retreat from key resistance zones.
XRP is showing signs of fatigue after its recent attempt to recover above crucial resistance levels. The token is trading close to $2.65, where selling pressure has increased, signaling a slowdown in bullish momentum. Market data indicates that sellers are gradually regaining control as the price struggles to maintain strength near key technical zones.
Following a brief recovery from October’s sell-off, XRP tried to climb toward the $2.75 to $2.80 range. However, the asset faced strong rejection at that level, triggering a renewed wave of selling. This pullback reflects traders’ growing expectation of a continuing downward move, especially as the price remains below major moving averages. The inability to close above the 200-day and 50-day EMAs highlights the weakening structure of the current trend.
Technical Indicators Show Bearish Setup
A visible pattern of lower highs has been forming since August, aligning with a descending resistance line. This setup often precedes deeper corrections when combined with falling trading volume and weaker capital inflows. The Relative Strength Index (RSI) reading of 53 points to neutral momentum, yet the fading buying interest suggests that buyers are losing conviction.
Analysts note that XRP’s failure to hold above $2.55 could lead to further downside movement toward the psychological $2.00 mark. This level may act as both technical and emotional support if the selling intensifies. The rejected breakout above the 100-day EMA also hints at reduced inflows, often seen before stronger bearish continuations.
Market Outlook
At present, bears hold a stronger position as XRP’s structure weakens and trading volume declines. Without renewed buying interest or external catalysts, the asset could be preparing for another correction phase. Maintaining a level above $2.80 remains crucial for bulls to regain momentum and counter the ongoing pressure from sellers.
