- XRP’s false breakout above $2.30 triggered massive long-position liquidations.
- Key indicators point to weakening momentum as resistance continues to hold firm.
- Traders now eye $2.10–$2.20 support zone amid growing bearish pressure.
XRP faced a harsh reversal after briefly surging above the $2.30 resistance, wiping out bullish momentum and triggering significant long-position liquidations. The breakout failed to hold as price action reversed quickly, closing the daily candle below the breakout level and sending a clear signal of market weakness.
The session’s pattern started with an increase in volume that initially signified a breakout. Nevertheless, this outburst was a mere mirage because the price had run out of steam, and many traders got blinded by it. The sudden turnaround emphasized the fragility of the overleveraged positions and wiped out a few days of cautious optimism.
Since mid-June, XRP has been trading along a rising wedge pattern. It kept on grinding and was sandwiched between the trendline support and the moving averages, which provided overhead resistance. The momentary breakout above the price of 2.30 appeared to be a breakout but proved to be untenable.
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Key Technical Indicators Confirm Weakening Momentum
Technical indicators are beginning to align with the bearish outlook. The 50-day Exponential Moving Average is starting to slope downward and is approaching a crossover with the 100 EMA. This pattern usually signals weakening momentum and often precedes further declines.
The Relative Strength Index is hovering near 55, showing that the asset is neither overbought nor oversold. This is a neutral position that creates opportunities to move further downwards in case of a rise in bearish pressure. The power of moving averages remains a source of dynamic resistance against the price to reclaim the upside potential.
Source: Tradingview
Traders are currently carefully observing the zone of support at the range of $2.10-$2.20. If that fails, a series of stop-loss orders may drive XRP down further, compounding the losses made by the failed breakout.
Bullish confidence, once shaken by the reversal, is causing market participants to become concerned once again about the marketplace.
To resume bullish movement, XRP needs to recapture the value of 2.30 on significant volume. Since there is resistance and the sentiment is weak, there was an opportunity for greater corrections to date.
XRP’s failed breakout has turned optimism into renewed caution. As bearish signals grow stronger, traders are focused on key support zones.
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