In the rapidly evolving cryptocurrency market, XRP faces a critical juncture as only two days remain for a decisive moment.
The altcoin is testing the 50-day exponential moving average (EMA) at $2.96, a historically significant support level. The outcome of this testing phase will likely be determined by the formation of the two-day candlestick pattern, which could set the course for XRP’s price trajectory.
Technical Indicators Suggest Downward Pressure
The 50-day moving average has served as a foundational support throughout XRP’s recent rise; however, signs suggest a potential breakdown below this level. If confirmed, this breakdown could prompt a rapid retreat toward the 100-day EMA range of $2.78 to $2.70, supported by weak buyer activity in the market.
The fast drop in trading volume is contributing to this precarious situation, creating a fragile market environment where sellers could exert significant pressure with sudden moves. As liquidity decreases, the impact of sell orders intensifies, and a volume surge could strengthen the downtrend, increasing the likelihood of short, sharp price movements.
Momentum indicators, too, are flashing warning signals as the Relative Strength Index (RSI) dips below the 50 level, signifying a loss of bullish momentum. Without quick intervention from buyers, the indicator’s approach toward oversold territory may further support a downward movement.
What Will the 2-Day Outlook Determine?
Technically, XRP stands at an important decision point. In the next few days, candlesticks could either confirm a breakdown, triggering a price drop to lower support levels or demonstrate a clean rebound from the 50-day average, moving the price into the $3.10 to $3.20 range. Such formations typically become evident within two to three candlesticks, pointing to an imminent significant move.
Amid this scenario, XRP traders face two choices: defend the 50-day average swiftly or risk the momentum reversing. With the decrease in volume and noticeable momentum loss, XRP’s mid-term bullish outlook is undergoing a serious test over the next 48 hours. The market’s reluctance to engage in aggressive buying shifts short-term dynamics in favor of sellers.
According to CryptoAppsy, XRP was trading around $3 with a 1.11% increase in the past 24 hours at the time of this report.
