XRP remained near $1.30 on Thursday, as technical signals suggested the cryptocurrency could face a renewed sell-off toward the $1 mark. The token struggled to build upward momentum despite recent announcements from Ripple, the US-based blockchain company behind XRP, aimed at attracting more institutional involvement.
XRP at a crossroads as bearish momentum builds
A bearish crossover was recorded last week when XRP’s 20-day exponential moving average (EMA) dropped below its 50-day EMA. This shift in short-term momentum indicated growing weakness in the recent trend and increased the risk of additional declines if bearish sentiment persists.
Crypto analyst ChartNerd highlighted that this technical formation echoed a similar crossover earlier this year, when XRP fell from about $1.40 to below $1, representing a drop of roughly 30%. ChartNerd noted that a comparable decline from current levels near $1.32 would target the $0.92 area, though past performance does not guarantee future results.
Market watchers flagged that XRP’s inability to recover above key moving averages signals that sellers maintain control, especially in short-term trading.
The bearish signal has heightened scrutiny of near-term supports and potential breakdown scenarios, particularly if current trading patterns continue.
| Moving Average | Current Position |
|---|---|
| 20-day EMA | Below 50-day EMA (Bearish crossover) |
| 50-day EMA | Above 20-day EMA |
Key support levels and fair value gaps
Analysts have pinpointed $1.25 as a critical level for XRP. A zone between $1 and $1.25, referred to as a fair value gap, showed reduced trading activity during an earlier price run. Breaching $1.248 could expose XRP to another wave of selling, with $1 acting as the next significant support.
Some market participants view a return toward $1 as a potential opportunity to accumulate rather than a sign of an impending collapse. However, sustained trading below $1.25 may encourage further selling, particularly if leveraged traders start closing their long positions.
Recent data from cryptocurrency exchanges indicated rising XRP balances and moves by some large holders to reduce their exposure. While not always a precursor to immediate liquidation, these transfers can advance additional downside risk if sentiment weakens.
Mini dictionary: Fair value gap, a technical analysis concept describing an area on a chart where little trading occurred during a rapid price move, often seen as a potential support or resistance zone when the price revisits that level.
Conflicting signals as buy indicator emerges
Despite the prevailing bearish tone, some analysts have observed signals that could support a near-term rebound. Ali Martinez, known for market research in the crypto space, identified that the TD Sequential indicator on XRP’s three-day chart recently generated a buy signal.
Martinez noted that the last three such signals were followed by rallies of 31%, 24%, and 18%, respectively. He cautioned, however, that this scenario holds only if XRP stays above $1.25. If the token maintains this level, a potential recovery toward $1.40 could follow. However, a breakdown below this threshold, especially if accompanied by continued selling by large holders, could trigger a move down to $0.98.
Initial resistance for XRP appears at $1.35, with further obstacles near the $1.36 to $1.37 moving average area. Should the price reclaim these ranges, the recovery outlook would strengthen despite the persistent bearish backdrop.
| Key XRP Levels | Value / Zone |
|---|---|
| Critical Breakdown Level | $1.248 |
| Support Zone | $1.00 – $1.25 |
| Immediate Resistance | $1.35 |
| Major Resistance Zone (Moving averages) | $1.36 – $1.37 |
