- XRP tests crucial support, market braces for possible sharp decline.
- Weak momentum and fading volume increase risks of bearish breakdown.
- Next two candles may decide XRP’s fate between rebound and, correction.
The XRP community was put on high alert today as the token approached a pivotal chart level that could dictate its next significant move. Traders and analysts are closely tracking XRP’s performance around its 50-day exponential moving average, with fears of a breakdown growing stronger.
According to market updates, XRP is holding near $2.96 as it tests this structural support. The same moving average that lifted recent rallies is now under intense pressure, and failure to hold the same would lead to a plunge to the $2.78 to $2.70 zone. The next barrier is the 100-day EMA.
Weak Technical Indicators Add to Bearish Pressure
Momentum signals are weakening as bullish control continues to fade. The relative strength index has fallen below 50, reflecting declining buyer strength. If the trend continues, the RSI may enter oversold territory, which will validate the possibility of a larger retracement.
Also Read: XRP Needs to Reclaim This Level to Reignite Bullish Momentum
Source: Tradingview
Further, the trading volume has declined significantly, indicating low market activity that exposes XRP to sudden sell orders. In the past, these arrangements have frequently resulted in sharp price moves, and the present situation points to the downside.
As such, the following two daily candles might determine whether XRP will continue its midterm trend. A move above the 50-day EMA would reopen a route to the $3.10 to $3.20 zone. Conversely, the weakness can be followed by a continued bearish breakdown, which could result in additional losses.
Market observers believe that XRP has reached a point where its structural strength will either hold or collapse. The coming sessions are expected to determine whether the token sustains its bullish outlook or enters a corrective phase.
XRP stands at a make-or-break moment as it tests its 50-day EMA. A rebound could restore confidence, while a breakdown may push the token toward $2.70 in the near term.
Also Read: The Next 48 Hours Could be Crucial for XRP
