XRP is currently navigating a challenging period, with recent price action indicating a significant loss of bullish momentum and a potential shift towards a more decisive bearish trend. Despite attempts to recover, the digital asset has encountered strong resistance, suggesting that sellers are regaining control and setting the stage for a potential further decline.
Bearish Momentum Takes Hold
Recent analyses reveal XRP's inability to sustain momentum above the 200-day Exponential Moving Average (EMA) and a clear rejection from the 50-day EMA. Following a brief recovery from an October sell-off, XRP attempted to push towards the $2.75-$2.80 range but was quickly rebuffed, leading to renewed selling pressure. This rejection aligns with a distinct pattern of lower highs observed since August, indicating a descending resistance line. Compounding this bearish outlook are dwindling trading volumes and feeble new capital inflows, traditionally strong precursors to a more significant market correction.
Critical Support Levels and Outlook
While the Relative Strength Index (RSI) currently suggests neutrality, the broader market picture paints a grim reality where bulls have failed to hold key zones. The inability to break above the 100-day EMA further signals a lack of new buying activity, strengthening the structural bearish continuation. Critical support levels to watch include $2.55, with the psychological $2.00 mark looming as the next significant technical and psychological barrier should the current decline accelerate. Unless bulls can swiftly reclaim the $2.80 level, the overall market sentiment suggests that a decline towards $2.00 appears increasingly likely, as the bears currently hold the dominant position.
