XRP faces difficulties in its recovery path, with the token price falling to $2.184 after attempts to reach $3. An analysis reveals several factors contributing to this decline.
Reasons for XRP's Decline
The dream of reaching $3 seems unattainable for several reasons:
1. The token was consolidating in a symmetrical triangle but was forced below the lower trendline due to sellers' pressure.
2. XRP is currently trading below key resistance levels in the range of $2.95 to $3.00, creating a strong barrier for recovery.
3. The volume profile indicates waning interest and decreasing market activity since mid-August, signaling indecision from both buyers and sellers.
Potential Downtrend Scenario
There is a diminishing bullish momentum as the 50-day EMA flattens and begins to curl downward. At $2.77, XRP is barely holding onto support from the 100-day EMA. If this support fails, the next stop could be the 200-day EMA at $2.51, which would confirm a deeper correction and disprove short-term bullish expectations.
Overall Market Condition of XRP
The current situation with XRP indicates that the target of $3 is unattainable due to bearish technicals, declining trading volume, and increasing moving average pressure. For market sentiment to change, XRP would need to reclaim $3 on high volume, which is a challenging task in the current environment. Otherwise, there remains the potential for a downturn toward $2.50 before any significant recovery efforts are made.
Currently, XRP is facing significant challenges, and achieving the goal of $3 appears unlikely. Substantial trading volumes and high market participant interest are necessary to ensure price growth.
