XRP’s upward momentum gained momentum after the price failed to recover from its previous high of $2.9, triggering a fresh decline that saw the price fall to previous support levels. The rejection raised questions about the strength of the bulls and whether they can regain control to push the price back to higher levels.
Bearish rally on 4-hour time frame
As bear pressure increases, attention now turns to key support zones and whether the bulls can hold on in the face of a bearish move, preventing a much deeper correction in XRP.
On the 4-hour chart, XRP is showing negative sentiment as it tries to fall below the 100-day elementary moving average (SMA) as it trends lower towards the support level at $1.9. In particular, the continued decline towards this support suggests that selling pressure is intensifying, and if support is not held, the asset could experience further declines.
Additionally, analysis of the 4-hour chart shows that the Composite Trend Oscillator trend line has dropped below the SMA line, signaling a potential change in momentum as it approaches the zero line. This indicates a struggle to maintain upward movement and indicates moderate bearish pressure, leading to cautious market sentiment. If the signal line continues to decline, it could result in increased selling activity.
Price fixed for XRP on a 1-day timeframe
On the daily chart, the crypto giant is showing significant downward movement, highlighted by a bearish candlestick after a failed recovery attempt that has surged towards its previous high of $2.9. The inability to maintain the upward trend means a lack of buyer confidence and a cynical mood on the market. As XRP heads towards the $1.9 support level, selling pressure may intensify, raising concerns about the possibility of a collapse.
Finally, the 1-day Composite Trend Oscillator signals increasing bearish momentum, with the indicator’s signal line falling below the SMA after remaining in the overbought zone. This development suggests a possible shift in market dynamics as overbought conditions may give way to increased selling pressure. A crossing of the signal line below the SMA is often interpreted as a bearish signal, indicating that the upward momentum may be weakening.
Related Reading: XRP Price Holds Above Support: Preparing for the Next Move?
In summary, as XRP faces renewed negative pressure, key support levels become crucial in determining its next move. Meanwhile, the first level to watch is $1.9, which could act as an initial buffer against further declines. A sustained break below this level could open the door to a deeper decline towards $1.7, an area of significant past activity. If bearish momentum continues, the $1.3 level could serve as the last line of defense against a broader sell-off.
