XRP Nears 3-Month Lows - Short-Term Outlook Turns Bleak

XRP teeters on the edge of a precipice as bearish momentum accelerates.

Technical Breakdown

The digital asset struggles to find support levels, with trading volumes reflecting growing investor anxiety. Market sentiment shifts from cautious optimism to outright concern as key resistance levels crumble.

Market Dynamics

Whale movements and institutional positioning suggest deeper structural issues at play. The usual crypto cheerleaders have gone suspiciously quiet—probably too busy counting their paper losses to tweet.

Looking Ahead

Unless XRP can stage a dramatic reversal, the path of least resistance points downward. Sometimes the market gives you exactly what you deserve, not what you want.

XRP’s Short-Term Outlook Turns Bleak

XRP’s dip over the past few days has pushed its price below the 20-day Exponential Moving Average (EMA), which forms dynamic resistance at $2.9065.

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The 20-day EMA measures an asset’s average price over the past 20 trading days, giving more weight to recent prices. 

When an asset trades above its 20-day EMA, it indicates that bulls are in control and that short-term momentum favors the upside. 

Conversely, when the price falls below this level, as XRP has, it suggests that selling pressure is intensifying and that the market’s short-term outlook has turned bearish.

Furthermore, on the daily chart, XRP’s Elder-Ray Index continues to show persistent negative readings, indicating weakening bullish momentum. For context, the sizes of the red histogram bars that make up the indicator have gradually increased in the past four sessions, signaling an uptick in sell-side pressure.

The Elder-Ray Index indicator measures the strength of bulls and bears in the market by comparing buying pressure (Bull Power) and selling pressure (Bear Power). When the value is positive, the market is experiencing more buying pressure than selling, suggesting a potential uptrend.

On the other hand, when its value is negative this way, the bears have the upper hand, and token selloff is strong among market participants.

XRP Balances on the Edge

XRP currently holds above the support floor at $2.7435. If the current bearish momentum holds, the altcoin could soon retest this level. A break below this support floor could push the token to $2.6371, a price level not seen in the past three months.

On the other hand, a resurgence in buyer interest could push the price back above $2.87 and potentially trigger a short-term rebound toward its 20-day EMA at  $2.9061.