- XRP’s $3 target fades as bearish momentum takes control.
- Declining volume and technical breakdown signal further downside risk for XRP.
- XRP struggles to regain momentum, making $3 unreachable in short-term.
XRP’s hopes of reaching the $3 mark appear to be fading fast, as the token struggles to regain upward momentum. Currently priced at $2.184, XRP has significantly lost ground after a failed attempt to break past the crucial $3 level. On the charts, we see a breakage of a symmetrical triangle, which is a technical pattern that usually depicts continuation.
Nonetheless, XRP dropped below the bottom trendline, driving the market into a bearish situation with the sellers in charge. This move has placed the token far below key areas of resistance, including the $2.95 to $3.00 area, which is a strong resistance that appears virtually impossible to cross in the near term.
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Weak Market Sentiment and Declining Volume Fuel XRP’s Struggles
XRP’s market sentiment is weakening, and the token’s path to $3 seems even more uncertain. A decline in trading volume since mid-August shows increasing uninterest on both sides of the market.
In the absence of robust demand and inflow, it seems unlikely that XRP would rebound to the level of $3. This lack of market activity exposes XRP to further downplay since the absence of momentum will make it difficult to reclaim the token.
The 50-day Exponential Moving Average (EMA) is also beginning to weaken, flatten, and curve down, indicating that the momentum of the bulls is dying. XRP is literally clinging to the 100-day EMA support at $2.77.
However, when this level fails, the token might undergo a more severe correction, as the next possible support zone is the 200-day EMA at $2.51. This sort of fall would nullify any short-term favorable anticipations, and the target of the $3 would appear all the farther away.
Source: Tradingview
Bearish technical signals, declining volume, and an increasing lack of interest in the market mean that XRP is becoming less and less likely to reach $3 again. For the token to reverse its downward trajectory, it would need a substantial increase in both price action and trading volume, which remains a difficult challenge given the current market climate.
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