XRP is showing signs of exhaustion after failing to sustain a short-lived upward move. Recent price action suggests that bullish momentum may be fading, putting the asset at risk of a deeper correction.
The token is currently trading at $2.24, slipping more than 1% from the previous session. A short-term bounce had raised expectations of a bull market, more so because the 50-day EMA was likely to move above the 100-day EMA. Nevertheless, this possible golden cross is currently at risk since XRP is having difficulties in maintaining positions above both short-term moving averages.
Although the price remains above the 200 EMA at $2.09, holding that level is now crucial, as failure to do so may unleash selling pressure and extend the decline. The 50 and 100 EMA converging at around $2.25 are now serving as immediate resistance and a daily close below that level may lead to further decline in the control of the bulls.
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Besides, the 2.00 level is also being considered as a crucial psychological area. A resounding fall below this may indicate a change of heart in the market leaving the token vulnerable to a slide downwards.
Falling On-Chain Activity Deepens Bearish Concerns
Beyond price levels, on-chain activity offers additional signs of weakness. XRP’s daily transaction count recently declined sharply from over one million to just 332,639, according to data from June 12. This fall in network usage mirrors the drop in price momentum and adds weight to the bearish outlook.
Traders and analysts are closely monitoring these levels for signs of either support or breakdown. Without a clear uptick in buying volume or renewed investor interest, XRP could continue trading within a tightening range. This scenario would delay or even invalidate the golden cross, leaving the door open for a major price pullback.
XRP is at a critical juncture, with technical signals and on-chain data both pointing toward a possible major downtrend. If current support levels fail, the asset could face increased selling and extended losses.
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