Since XRP is having trouble holding onto its position above important support levels, its recent bullish momentum seems to be waning. Following a positive recovery from $1.95, a level which is also the 200-day EMA (black line on the chart), XRP was able to approach the $2.20-$2.30 resistance zone. However, its short-term recovery trajectory is now in doubt due to fresh selling pressure brought on by its inability to break through this level.
Although a breakout is still possible, the asset is still consolidating under long-term pressure, according to the chart, which shows that XRP is still trapped within a descending wedge pattern. The $3 psychological barrier, which was once considered the next big target, now appears far off as market momentum wanes and bearish volume increases. XRP will need to make a strong defense of the $2.00 level over the course of the next day.
The token may return to the 200 EMA at about $1.95, a crucial point that has served as a launchpad for brief rallies in the past, if it breaks below this support. Should that threshold be breached, a more profound decline might ensue, potentially pushing XRP closer to the lower $1.80 range. The $2.26-$2.28 area, which corresponds to the 50-day EMA (orange line), must be reclaimed by bulls on the upside.
Rekindled optimism and a possible path toward the resistance levels of $2.60 and $2.84 could result from a prolonged move above this zone. Growing weakness is also reflected in the Relative Strength Index (RSI), which is currently hovering around the 40-43 range, which indicates bearish bias but is not yet oversold. When coupled with a comparatively low trading volume, this suggests that the market is unsure.
The trajectory of XRP toward $3 has been momentarily halted. The key support is $2.00 and the short-term resistance is $2.26. Traders should keep an eye on both. The next significant movement of the asset will probably be determined by a breakout or breakdown from this range.
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