XRP's recent rise to $2.30 turned out to be temporary, leading to a sharp decline and long-position liquidations.
False Breakout and Position Liquidations
XRP faced a harsh reversal after briefly surging above the resistance at $2.30, wiping out bullish momentum and triggering significant long-position liquidations. The breakout failed to hold, and the price reversed quickly, signaling market weakness.
Key Technical Indicators Confirm Weakening Momentum
Technical indicators are starting to align with a bearish outlook. The 50-day Exponential Moving Average is beginning to slope downward and is nearing a crossover with the 100 EMA, which usually signals weakening momentum.
Current Market Situation and Support
Traders are currently observing the support zone at the $2.10-$2.20 range. If this support fails, a series of stop-loss orders could drive XRP lower, compounding losses from the failed breakout. To resume bullish movement, XRP needs to reclaim $2.30 on significant volume.
XRP's failed breakout has turned optimism into renewed caution among traders. As bearish signals grow, focus is on key support zones.
