Ripple (XRP) is losing momentum after its recent breakout while the broader crypto market remains unexpectedly steady. Bitcoin and major altcoins continue to hold firm despite rising geopolitical tensions across the Middle East and Asia. XRP is following this trend but is showing early signs of weakness as price action cools.
The token has just broken into a significant resistance level of approximately $2.40, just under the 200-day moving average. It was unable to maintain such a level, and it encountered a substantial rejection. The sellers then pushed XRP below the 100-day moving average that is around the $2.20 mark.
XRP Approaches Key $2.00 Support Amid Slowing Strength
XRP is currently sliding to the support zone of $2.00. This level is in line with the middle of its recent upward trend. The zone is providing short-term support, although momentum indicators are implying slowing strength.
The RSI has crossed the overbought area and reversed its direction. It has now nearly dropped below the 50 mark that will indicate additional weakness. A close below $2.00 each day can carry the asset into a further drop to the recent low of $1.80.
Source: TradingView
Positive scenarios are still possible when XRP regains its lost momentum. Once the price moves above the 100-day moving average and the zone has been regained back to the level of $2.40, then it is possible to move towards the 200-day moving average. An upward break above that may go into the level of $3.00.
Also Read: Ripple Secures UK Dominance with FCA Approvals Since 2016 Expansion
Crypto analyst Butterfly highlighted that XRP is actually trading above the midline on the descending channel on the two-day chart. The analyst noted some accumulation and reversal that was taking shape over previous sessions. An established bounce might bring the next upswing as high as $4.20.
Source: X
XRP Approaches Key Breakout Area With Strong EMA Support
Moreover, another analyst, Egrag Crypto, mentioned that the three-day chart was still in a bullish structure. The price is in a down channel, which is almost approaching a decision point between $2.30 and $2.40. Traders are becoming more attracted to this zone.
The analyst pointed out several crucial points. The 50-day EMA is flattening, and it indicates less selling pressure. The 200-day EMA has extended upwards with wider trend support. Price is still above key EMA clusters, which shows structural strength.
The channel resistance coincides with the breakout region of $2.30. A close above $2.40 on the 3-day time frame would likely confirm a breakout. That would create a possible expansion from $2.70 to $3.13.
Source: X
The inability to get through the zone would hold XRP in its range. The structure, however, is maintained as long as the price range is held above the price region of $2.00. Analysts believe that such an arrangement is not heralding the conditions of breakdown. It indicates that there is continuous compression followed by a phase of expansion.
Also Read: XRP Set to Repeat 2017 Breakout, Could Surge Over $16.5 with 663% Upside
