XRP recently faced a critical technical rejection, sparking concerns about its immediate future and long-term trajectory. After a brief period of recovery, the cryptocurrency encountered a significant hurdle that has redefined its short-term outlook, shifting sentiment from cautious optimism to pronounced bearishness.
The Critical Rejection and Its Aftermath
XRP's attempt to rally was abruptly halted by a decisive rejection at its 200-day Exponential Moving Average (EMA). This key technical level, often seen as a demarcation between long-term bullish and bearish trends, triggered an immense wave of selling volume, described as a "death order." This immediate downturn saw XRP plummet from the $2.80-$2.90 range back towards $2.40, indicating that large holders likely capitulated, using the 200-day EMA as a final exit point before anticipating further declines.
Bleak Technical Landscape and Downside Potential
The technical indicators for XRP now paint a concerning picture. The asset has fallen below both its 50-day and 100-day moving averages, clearly signaling a bearish shift in momentum. Compounded by sustained high selling volume and an RSI (Relative Strength Index) languishing below 40, indicating increasing weakness, the immediate future appears challenging for any bullish aspirations. Analysts suggest a highly probable retest of the $1.8-$2.0 support zone, with a prolonged descent towards the $1.00 mark – considered the lower boundary of its long-term channel – as a distinct possibility. Failure to swiftly recover above $2.08 could erode investor confidence, making $1.00 the critical "last line of structural protection" against a more severe market capitulation.
