XRP’s upward momentum paid off after the price failed to recapture its previous high of $2.9, triggering a new low that led the price down to previous support levels. The rejection raised questions about the strength of the bulls and whether they could manage to bring the price back to higher levels.
Bearish Build-Up During 4 Hour Time Frame
With bearish pressure mounting, the focus now shifts to key support areas and whether the bulls can hold firm against the downside move, preventing XRP from facing a deeper correction.
On the 4-hour chart, XRP is showing negative sentiment, trying to break below the 100-day Simple Moving Average (SMA) as it drops to the $1.9 support level. Specifically, a sustained decline in this support suggests that selling pressure is building, and if the support fails to hold, the stock may experience further declines.
Also, analysis of the 4-hour chart reveals that the trend line of the Composite Trend Oscillator has fallen below the SMA line, indicating a possible change in momentum as it approaches the zero line. This indicates a struggle to sustain the upward movement and points to moderate pressure, leading to a cautious market sentiment. If the signal line continues to decline, you may initiate a bullish trade.
Price Set for XRP in 1 Day Time Period
On the daily chart, the crypto giant is showing a significant downward movement, highlighted by a bearish candlestick after a failed recovery attempt to climb to its previous high of $2.9. The inability to sustain an uptrend means a lack of consumer confidence and a sense of pessimism in the market. As XRP aims at the support level of $1.9, pressure from sellers can increase, raising concerns about the possibility of a breakout.
Finally, the 1-day Composite Trend Oscillator shows growing bearish momentum, the indicator’s signal line has dropped below the SMA after lingering in the overbought zone. This development suggests a potential shift in market dynamics as overbought conditions may give way to increased selling pressure. A signal line crossing below the SMA is often interpreted as a bearish signal, indicating that the upward momentum may be weakening.
Related Reading: XRP Price Steadies Above Support: Preparing For The Next Move?
Overall, as XRP faces renewed negative pressure, key support levels are crucial in determining its next move. Meanwhile, the first level to watch is $1.9, which may act as a first stop against further declines. A further break below this level could open the door to a deeper decline to $1.7, a key historical activity region. If bearish momentum persists, the $1.3 mark could act as a last line of defense before a broader selloff emerges.