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The price of XRP is trading at $2.96 as it nears its 50-day exponential moving average (EMA), which is a significant support line. This moving average was used recently to support upward surges but is currently under tremendous pressure. A failure to maintain above this extent might drag XRP down sharply, and a fall is possible that aims at the $2.78 to $2.70 mark. The second necessary support is the 100-day EMA, which will draw the attention of traders.
Market participants carefully observe numerous movements at this level. A positive result of this test may determine the direction of XRP in the short-term to mid-term. Keeping the EMA 50 could open the channel back through resistance on or around $3.10 to $3.20. A break underneath the EMA, however, might signal a more substantial sell-off.
Technical signals suggest that XRP is experiencing a loss of momentum. The relative strength index (RSI) has fallen to below 50, indicating that buyer strength is declining. Further RSI depreciation may take the indicator into oversold levels, with an increased possibility of a bigger correction. Such a trend contributes to the token's bearish forces.
It has also decreased sharply in terms of trading volume, implying lowered market performance. Assets like XRP may have low volume, which makes them prone to massive price shifts, mainly due to sell-offs. Slower momentum and volume deterioration raise the odds that a sharp loss will occur.
Also Read: Will XRP Hit $30 During This Bull Cycle?
The two following daily candlesticks will be essential to form the immediate trend of XRP. A decisive break and close above the 50-day EMA may indicate a recovery and boost new buying interest. On the other hand, if XRP fails to maintain this level, it can enter corrective growth, where the prices can decrease to the $2.70 area.
XRP observers report that the digital currency is at a steep crossroads. The token's capacity to provide structural support will define its short-term perspective. The traders will monitor price action and trade volume to determine whether XRP can begin working its way back to bullish form or continue to be under pressure on the downside.
