XRP recently experienced a sharp reversal following a false breakout, affecting many investors. The analysis indicates the instability of the bullish trend.
Overview of XRP Situation
XRP faced a sharp reversal after an attempt to break through the resistance level at $2.30 ended in failure. This moment led to liquidations of long positions, highlighting the fragility of the current bullish sentiment in the market.
Technical Analysis and Support Levels
According to technical analysis, XRP has been forming a rising wedge structure since mid-June. Despite a brief rise above $2.30, trading volumes confirmed distribution of assets rather than accumulation. Moving averages are also creating dynamic resistance, complicating further growth.
Future Movement Prospects
If XRP cannot hold in the range between $2.10 and $2.20, there is a risk of declining to lower levels, which could trigger a wave of selling. The current time is a test for the bullish market, where overcoming resistance with volume confirmation is essential.
Recent events in the XRP market serve as a reminder of the need for caution among traders. Despite the brief rise, the existing trend leaves much uncertainty.
