XRP is currently trading around $2.86 after breaking below its ascending trendline, signaling pressure on the token’s recent upward structure. Analysis reveals signs of a potential reversal, but there is also a risk of further decline.
Current Price and Technical Analysis
XRP is trading at approximately $2.86 after breaking below its ascending trendline which previously supported the token’s rally. This shift indicates a weakening in short-term momentum placing XRP at a critical technical level.
The Relative Strength Index (RSI) is now below 40, nearing oversold territory, suggesting bearish momentum might be slowing.
Weak Trading Activity
XRP's downward movement has been accompanied by a noticeable drop in trading volume. The reduced participation indicates that the selling pressure lacks strong conviction, and limited buying pressure could shift market momentum.
Key Support Levels and EMA
The price zone between $2.95 and $3.00 is now considered vital for any potential bullish recovery. Regaining this level would aid in restoring XRP’s previous upward structure. However, risks remain notably near the 50-day exponential moving average, which currently lies just below the market price.
Should the price fall further, attention will shift to the 100-day EMA near $2.74, emerging as a critical support area. Sustaining below this level could expose XRP to further bearish pressure.
Despite current weaknesses in structure and momentum, the oversold RSI and lack of volume support for the sell-off keep a rebound scenario in play. The market remains at a technical crossroads, and traders are closely watching for signs of renewed volume and potential pushes above short-term moving averages.
