XRP price has had a volatile journey, rising to $3 before declining. Currently at $2.26, traders wonder if a major crash is looming or if it's just a healthy correction.
Pressure on XRP Price
The most striking element in the chart is the fading bullish momentum. XRP is trading below all short-term moving averages — the 20, 50, and 100-day SMAs — which now act as resistance. Attempts to break these levels have failed, indicating buyers are not in control. Heikin Ashi candles show persistent red bodies with lower highs, clearly signaling bearish sentiment.
What Does RSI Say About a Possible Breakdown?
The Relative Strength Index (RSI) stands at 42.9, leaning towards bearish. It hasn't reached oversold levels but shows no strong upward momentum. Its downward trend since mid-February, without bullish divergence, suggests a quick dip could occur if selling pressure increases.
Where Are the Key Support and Danger Zones?
XRP is trading above the crucial 200-day SMA near $1.76. Historically, this average has been the last line of defense in downtrends. Breaking below it could confirm a bearish trend with a potential drop to $1.50. Conversely, reclaiming $2.50 might signal renewed interest and a bullish recovery.
Although XRP hasn't crashed, the current structure suggests a deeper correction is possible. Traders should watch the $2.00 support zone and the 200-day SMA near $1.76 to determine the next move.
