- XRP struggles after rejection at 200-day EMA, signaling bearish momentum.
- Massive sell-off pushes XRP towards $2.40, increasing downside pressure.
- XRP faces possible decline to $1.00 unless recovery occurs soon.
XRP’s recent price rally has faced a significant setback following a harsh rejection at the 200-day exponential moving average (EMA), a crucial level often marking the divide between bullish recoveries and bearish declines.
The cryptocurrency experienced a brief rebound after a market-wide crash, but this momentum quickly faltered as the asset was turned away from the key resistance. The rejection came swiftly and decisively, sending XRP back toward its lower support levels.
As XRP struggled to hold above the $2.80-$2.90 range, a massive wave of sell orders flooded the market, leading to a sharp price drop to around $2.40. This rapid decline further exacerbated the negative sentiment in the market, causing more downside pressure.
Large holders likely viewed the 200-day EMA as a final opportunity to exit before a deeper pullback, a suspicion supported by the accompanying surge in selling volume. This swift turnaround is seen as a defining moment for XRP, potentially signaling a long-term downtrend.
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Market Sentiment Shifts Amid Weak Technical Indicators
XRP’s technical outlook has turned increasingly bearish in the wake of this rejection. The asset has now fallen below both the 50-day and 100-day moving averages, indicating a shift in momentum.
High selling volumes persist, and the Relative Strength Index (RSI) has dipped below the 40 level, signaling heightened weakness in the market. These indicators suggest that XRP may face further struggles in the short term, with little to suggest a quick turnaround.
Source: Tradingview
The most probable scenario for XRP is a retest of the $1.80-$2.00 support zone, where the cryptocurrency has previously found stability. If this support fails to hold, XRP could face a deeper decline, potentially reaching the $1.00 mark.
This price level aligns with the lower boundary of the long-term channel that XRP has been navigating. The $1.00 zone represents the last line of defense before the market potentially enters a phase of capitulation. Therefore, the pressure is mounting on XRP to reclaim ground above $2.08 to prevent further erosion of investor confidence.
XRP’s recent technical rejection has left the asset in a vulnerable position. Despite the possibility of short-term bounces, the broader trend suggests a bearish outlook, and investors are closely watching the asset’s next move. With the market sentiment shifting and key support levels at risk, XRP’s immediate future hangs in the balance.
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