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XRP fails to clear $2.50 resistance – Are bears poised to take over?
Despite multiple attempts, XRP has failed to push past the critical $2.50 barrier, casting a shadow of uncertainty over its immediate future trajectory. The token’s recent rally attempt was stifled just below this crucial mark, signaling that sellers are still in control.
The XRP chart reveals the asset hovering around $2.37 after being rebuffed near the $2.50 mark for the third time in two weeks. This resistance zone aligns with a densely populated supply area visible on the price chart. The inability of bulls to gain a firm foothold above $2.50 serves as a stark reminder that sellers are still in control.
As the price consolidates below this critical resistance, signs from both derivatives and spot markets suggest that bearish pressure may be gathering momentum. XRP was trading just above its 50-day moving average of $2.37 at press time but far below the 200-day moving average of $2.52. This mixed technical setup reflects indecision in the market.
The Relative Strength Index (RSI) stands at 48.48, indicating a neutral momentum stance with a slight bearish bias. A breakdown below the 50-day MA could potentially expose the token to downside risk toward the $2.00 psychological support zone.
Futures market activity lacks conviction
Data from the XRP Futures Open Interest chart paints a similarly cautious picture. Following a peak around mid-January, Open Interest has gradually declined and currently rests at approximately $2.8 billion. This decline in speculative positioning indicates that traders are not yet confident in a strong bullish breakout.
This is further reinforced by stagnant volume trends, suggesting that the recent price action is largely driven by spot market participants rather than leveraged speculators. Without an uptick in Open Interest or a shift in sentiment, XRP may struggle to overcome its current resistance.
Where XRP might be headed next
If XRP fails to defend the $2.35 zone, a drop toward $2.00 could follow. On the other hand, a strong daily close above $2.50 with volume confirmation would invalidate the bearish setup and pave the way for the token to potentially target the $2.75-$3.00 range.
However, this would require renewed buying strength, which is currently lacking. With both technical resistance and derivatives weakness in play, bears may have a slight edge in the short term. However, any significant shift in market sentiment or fundamental catalyst could rapidly reverse the trend.
Note: The information provided does not constitute investment advice; readers are advised to conduct their own research before making any decisions related to cryptocurrencies.
Source: https://ambcrypto.com/xrp-fails-to-clear-2-50-resistance-are-bears-poised-to-take-over/
