In recent business activities, XRP took a significant hit on its latest attempt to climb towards its previous high of $0.6360. Despite the initial bullish momentum suggesting a potential breakout, XRP failed to sustain its upward trajectory. The failure to reach the anticipated target led to a notable decline in value, raising concerns among traders and analysts about the short-term outlook for XRP.
As XRP struggles with these hurdles, this article seeks to analyze the current price movement and technical indicators that suggest a sustained decline. The goal is to provide readers with a comprehensive understanding of the token’s potential future trajectory.
XRP was trading at $0.5974 at the time of writing, indicating a gain of 1.13%. The cryptocurrency has accumulated a trading volume of over $2 billion and a market cap of over $33 billion. Over the past day, XRP’s trading volume has increased by 41.17%, while its market cap has increased by 1.13%.
Initial bullish momentum falters
On the 4-hour chart, although XRP is still actively trading above the 100-day simple moving average (SMA), its price is currently in a bearish move towards the $0.5725 mark after failing to sustain its upward trajectory. If the digital asset continues its current downtrend, it could drop below the $0.5725 mark.
The 4-hour composite trend oscillator indicates that XRP may continue its bearish trajectory towards the $0.5725 mark as the signal line is currently attempting to dip below the indicator’s SMA. If the signal line crosses below the SMA, both lines are likely to move towards the zero line, signaling a potential extended decline for the coin.
On the 1-day chart, after XRP failed to sustain its upward trajectory to its previous high of $0.6360, the price is currently attempting a single bearish move towards the $0.5725 mark, trading above the 100-day SMA. This bearish momentum could lead the digital asset to reach the $0.5725 mark.
Lastly, it can be seen that the signal line is currently trading in the overbought zone and is trying to move down towards the indicator’s SMA. This formation on the Composite Trend Oscillator suggests that XRP Price may continue its bearish movement towards $0.5725 before potentially starting to move higher again.
Expert Insights on Crucial XRP Levels to Watch
If XRP price drops to the $0.5725 mark and encounters rejection, it will likely initiate an upward move towards the $0.6360 resistance mark. A successful breach above this target could potentially trigger an additional upward move to test the $0.6697 resistance and beyond.
However, if XRP price approaches the $0.5725 support range and breaks below it, it is likely to continue its decline towards $0.4663. support level. A further break below the $0.4663 support level could lead to a price decline towards the $0.4088 support point and other lower levels.