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the next XRPWith the pair recently breaking the crucial downtrend line, traders were anticipating a significant rally. However, the asset's price is reversing back towards $2.40, indicating that it is losing ground rather than gaining ground. Let us check the reasons for this sudden slowdown and its possible repercussions on the global economy market.
Although XRP was able to break through the downtrend line, the rally was unable to maintain its upward momentum. This indicates that after the breakout, there was not a lot of buying pressure, which is necessary to sustain the rally. XRP is now more vulnerable to selling pressure as it was unable to close strongly above $2.50, undermining bullish confidence.
There is a de-risking phase going on in the larger cryptocurrency market as traders make gains from the recent highs. This pattern is particularly evident on assets such as XRP Which has already achieved significant gains. By restricting capital flow into XRP, low risk appetite hinders the cryptocurrency's price growth.
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Near $2.60, XRP is facing significant overhead resistance that has hindered its upward trajectory. The combination of this resistance and low volume indicates that traders are reluctant to push the price higher in the absence of more effective catalysts. The crucial support area to watch on the downside is the $2.30 level, which corresponds to the 50 EMA.
If XRP breaks this barrier, it could retest the lower support levels at $1.20 or even $1.69. Currently, the RSI is neutral at around 57, indicating that the market is uncertain. XRP It may lose more ground if selling pressure continues, especially if the market remains generally cautious. However, a strong recovery from the $2.30 support level may revive optimism and provide an opportunity for another breakout attempt.
XRP's performance at the moment will be mostly determined by the state of the market as a whole and the asset's ability to attract new buyers. Traders can predict the next move by closely monitoring important support and resistance levels.
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