XRP’s upward momentum has taken a hit after the price failed to reclaim its previous high of $2.9, triggering another decline that has seen the price fall to previous support levels. The rejection has raised questions about the strength of the bulls and whether they can regain control to send the price back to higher levels.
Bearish build-up within a 4-hour time frame
With bearish pressure mounting, the focus now shifts to the key support zones and whether the bulls can hold their ground against the downward move, thus preventing XRP from experiencing a much deeper correction.
On the 4-hour chart, Specifically, a continued decline towards this support indicates that selling pressure is increasing, and if support does not hold, the asset could fall even further.
Furthermore, an analysis of the 4-hour chart shows that the Composite Trend Oscillator trendline has dipped below the SMA line, indicating a possible shift in momentum as it gets closer to the zero line. This signals a struggle to sustain upward moves and indicates moderate bearish pressure, leading to cautious market sentiment. If the signal line continues to drop, it could lead to increased selling activity.
Price set for XRP on the 1 day time frame
On the daily chart, the crypto giant shows significant downward movement, marked by a bearish candlestick after a failed recovery attempt to rise to its previous high of $2.9. The inability to maintain an uptrend implies a lack of buyer confidence and a prevailing pessimistic sentiment in the market. As XRP targets the USD 1.9 support level, pressure from sellers could increase, raising concerns about the possibility of a breakdown.
Finally, the 1-day Composite Trend Oscillator signals growing bearish momentum, with the indicator’s signal line dipping below the SMA after hovering in the overbought zone. This development signals a possible shift in market dynamics as overbought conditions may give way to increased selling pressure. A signal line crossover below the SMA is often interpreted as a bearish signal, indicating that upside momentum could be weakening.
Related Reading: XRP Price Remains Above Support: Preparing for the Next Move?
In short, 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 for a deeper decline towards $1.7, a region of significant historical activity. If bearish momentum continues, the $1.3 mark could serve as the last line of defense before a broader sell-off ensues.
