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Is XRP’s Weakening Momentum a Sign to Sell Now?
XRP price recently attempted to rally above $2.550, but current xrp news suggests that its momentum is faltering. After a brief ascent, the price now encounters significant resistance around the $2.650 mark, raising concerns about a potential decline. The cryptocurrency gained traction as it moved past the $2.60 threshold but faced immediate selling pressure from bears, resulting in a retreat below the 100-hourly Simple Moving Average.
The market structure reveals a break beneath a bullish trend line, with critical support now identified at $2.6350 on the hourly chart for the XRP/USD pair. This movement highlights the vulnerability of XRP, especially as it trades below both the $2.60 level and its moving average, indicating a weakening bullish sentiment.
Recent Price Movements
XRP had shown promise as it climbed above the $2.50 level, mirroring the broader crypto market trends seen with Bitcoin and Ethereum. The price surged past the $2.550 and $2.60 resistance levels, with the bulls driving the price to a peak of $2.6972 before initiating a correction. This correction involved a drop below the 23.6% Fibonacci retracement level of the recent rise from the $2.327 swing low.
As XRP trades below $2.60, the possibility of further downside becomes more pronounced. If the price cannot reclaim the $2.650 level, it risks further declines. Initial support rests at $2.5650, followed closely by the psychological level at $2.550. A decisive break below this support may lead to deeper losses, potentially targeting $2.5120—aligning with the 50% Fibonacci retracement level of the recent upward swing.
Resistance Levels to Watch
For XRP to reverse its current trend, it must overcome resistance levels effectively. The immediate hurdle lies at $2.620, followed by the critical $2.650 mark. A successful breach above $2.650 could pave the way for a test of $2.6880. Should bullish momentum continue, the price may reach as high as $2.720, with further gains targeting the $2.7650 level. The next major challenge for bullish traders appears near the $2.80 mark.
Technical Analysis Overview
Current technical indicators present a mixed outlook. The hourly MACD shows increasing bearish momentum, suggesting that sellers may gain an upper hand in the near term. Additionally, the Relative Strength Index (RSI) for XRP/USD has dipped below the 50 level, indicating bearish pressure persists.
In summary, XRP’s price dynamics suggest a cautious approach for traders. If the cryptocurrency fails to reclaim significant resistance levels, further declines may be imminent. As the market reacts, keeping an eye on support levels at $2.550 and $2.5120 will be essential for gauging potential bearish outcomes.
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