- XRP failed to sustain momentum above $2.50 after its breakout, with weak buying pressure leaving it vulnerable to selling.
- Broader risk-off market conditions and strong resistance at $2.60 are limiting XRP’s upward potential.
- Key support lies at $2.30; a break below could target $1.69, while a recovery might enable another breakout attempt.
XRP recently broke above a key descending trendline, sparking excitement for a potential rally. But instead of soaring higher, its price has slipped back toward $2.40, leaving traders puzzled. Let’s explore why XRP’s momentum is fading and what it could mean for its next moves.
Breakout Without Follow-Through
While XRP’s breakout initially looked promising, it failed to maintain upward momentum. A lack of sustained buying pressure after the breakout has left the asset vulnerable to selling pressure. The inability to firmly close above $2.50, a critical level for bullish confidence, has further dampened enthusiasm among traders.
Risk-Off Market Conditions Weighing on XRP
The broader crypto market appears to be in a derisking phase, with traders cashing in gains from recent rallies. This cautious sentiment is particularly visible in assets like XRP, which have already seen substantial price increases. Reduced risk appetite is limiting capital inflows into XRP, making it harder for the cryptocurrency to build on its breakout.
Adding to the challenge, XRP is facing strong overhead resistance near $2.60, and trading volume has decreased. This combination suggests hesitation among traders to push prices higher without new, stronger catalysts.
Key Levels to Watch: Support and Resistance
On the downside, $2.30 is a crucial support level, aligning with the 50 EMA. A breach of this support could open the door to lower targets at $1.69 or even $1.20.
For now, the RSI sits at a neutral 57, reflecting uncertainty in the market. If selling pressure continues and market conditions remain cautious, XRP could struggle further. However, a strong recovery from $2.30 might reignite optimism and set the stage for another breakout attempt.
Outlook for XRP
XRP’s next move will likely depend on the overall market sentiment and its ability to attract fresh buying interest. Traders should keep a close watch on the $2.30 support and $2.50-$2.60 resistance zones to anticipate potential shifts.
While the current slowdown is a setback, a rebound from support levels could still create opportunities for another rally. For now, patience and careful observation are key as XRP navigates this uncertain phase.
