XRP Facing Pressure Near $3: Potential Drop to $2.85 if Support Weakens
In the world of cryptocurrency, XRP finds itself in a cautious phase as it hovers close to its 50-day exponential moving average (EMA), with the current short-term outlook indicating a loss of momentum and weak demand.
The 50-day EMA remains a significant level for XRP, and its current position near this key indicator is causing concern among traders. XRP's price has been on a downward trajectory since reaching an all-time high around $3.66, and it is now hovering just above the $3.00 mark, retreating towards key support levels around $2.90 and $2.62.
This price action, combined with a decrease in trading volume, signals a short-term lack of buying pressure and potential for further pullbacks within a broader bullish context. XRP has, however, managed to maintain its position above its 200-day EMA, which continues to support a longer-term bullish bias.
If selling pressure builds, XRP risks breaking below the $2.90 support, with further declines towards $2.62 or even $2.40 possible. Conversely, renewed demand could push XRP towards $3.40 and the previous high near $3.66.
The relative strength index (RSI) for XRP has fallen below 50, indicating a decline in buyer strength. A break underneath the EMA 50 might signal a more substantial sell-off, with the potential target for such a decline being the $2.78 to $2.70 mark. Further RSI depreciation may take the indicator into oversold levels, increasing the possibility of a bigger correction.
The focus of traders is on the price action and trade volume of the upcoming candlesticks to make informed decisions. A failure for XRP to maintain above the 50-day EMA might lead to a sharp decline, potentially initiating a corrective growth phase. The 50-day EMA is a significant support line for XRP, and the potential target for this corrective growth is the $2.70 area.
The upcoming candlesticks will provide insight into XRP's immediate trend. The token's ability to provide structural support will define XRP's short-term perspective. Traders aim to ascertain whether XRP can begin working its way back to a bullish form or continue to be under pressure on the downside.
Despite the current short-term softness, the broader market context includes positive regulatory developments and institutional adoption, maintaining medium-term bullishness. Some technical analyses and machine learning models still project price targets ranging from around $3.12 up to $4.45 in the short term, but these depend on recovery in volume and momentum.
In summary, the short-term price action of XRP near the 50-day EMA points to a cautious outlook with risk of further downside unless support holds and trading activity picks up. The near-term will likely involve consolidation or mild correction before a possible renewed rally aligned with the longer-term bullish fundamentals.
Read also:
- Show a modicum of decency, truly
- Latest updates for July 31: Introduction of Ather 450S with expanded battery, unveiling of new Tesla dealership, and additional news
- VinFast's debut EV plant in India, Tata Harrier EV distribution starts, next-gen Mahindra Bolero sightings caught on camera
- Tesla-powered residences in Houston create a buyers' frenzy
