XRP struggles to break above the $2.50 mark, a key level closely monitored by investors. Despite initial buyer momentum, sellers quickly regained control. Is this resistance formidable, or could a bullish reversal still be on the horizon?
The XRP has consolidated around $2.37 after being rejected near the $2.50 level for the third time in two weeks. This resistance zone aligns with a significant supply area visible on the price chart. Despite attempts to rise, the bulls have not managed to firmly establish themselves above $2.50, indicating that sellers still maintain control.
Source: TradingView
XRP is trading just above its 50-day moving average at $2.37, but well below the 200-day moving average at $2.52. This mixed technical setup reflects some market indecision.
Additionally, the Relative Strength Index (RSI) is at 48.48, indicating neutral momentum with a slight bearish bias. A break below the 50-day moving average could expose the asset to a downside risk towards the psychological support zone of $2.00.
Data from the XRP futures contracts chart paints an equally cautious picture. After peaking around mid-January with a value close to $5.8 billion, open interest has gradually decreased and is currently around $2.8 billion.
Source: Glassnode
The decline in speculative position suggests that traders are not yet confident in a strong bullish breakout. This is further supported by stagnant volume trends, indicating that recent price action is primarily driven by spot market traders rather than leveraged speculators. Without a resurgence in open interest or a change in sentiment, XRP could struggle to overcome its current resistance.
If XRP fails to defend the $2.35 zone, a drop to $2.00 could follow. On the positive side, a solid daily close above $2.50 with volume confirmation would invalidate the bearish setup and pave the way towards the range of $2.75 to $3.00.
However, this would require a resurgence of buying pressure, currently lacking. With both technical resistance and derivative weakness at play, bears might have a slight short-term advantage. Nevertheless, any major shift in market sentiment or fundamental catalyst could quickly reverse the trend. These periods of market indecision are sometimes seen as opportunities by investors. If you believe it’s the right time to invest in XRP, here’s how you can do it with Weex:
Before making any investment, it’s always recommended to research the market conditions and the risks involved. Above all, never invest more than you can afford to lose.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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