XRP, the cryptocurrency issued by Ripple Research Institute, is ending the year far off expectations that had it reaching above $4 or $5, and is now struggling to regain the $2 level.
Financial market analyst Jainam Mehta said the price of the Ripple cryptocurrency is in “an area where bearish momentum is slowing, but a recovery is yet to be confirmed.”
He also said, “Although the market is no longer exhibiting a pronounced bearish trend, buyers have not yet shown sufficient conviction to challenge broken resistance. This balance has made the current range a potential turning point rather than a continuation of previous declines.”
Mehta’s proposal strengthens the idea that XRP is the definitive case. As bearish momentum slows, a sharp decline becomes less likely. but, Lack of purchasing power keeps prices stuck in the risk zone.
In this context, a recovery in key levels will be decisive to see whether the asset can break out of the current range or whether the flattening will be prolonged.
To support his claim, Mehta explains that the price of XRP has remained strong. below the major exponential moving average (EMA)a technical analysis indicator that tracks market trends.
As explained in Cryptopedia, the education section of CriptoNoticias: EMA is created from past prices and averaged. For example, in a 10-day moving average, each point on the curve represents the average price recorded by the asset during that period.
The following graph shows 20-day, 50-day, 100-day, and 200-day moving averages. Analysts identify them as the most relevant for assessing current trends.
Recent candlesticks have shown a continuous decline and their values are below all exponential moving averages (20 EMA in red, 50 EMA in orange, 100 EMA in light blue and 200 EMA in blue), reinforcing the negative bias in the short, medium and long term.
The purple color at the bottom highlights the Relative Strength Index (RSI). It lies near the bottom of the neutral range, with its average (yellow line), indicating weakness in the buying impulse and lack of clear signs of recovery.
“Since even the 20-day EMA cannot be recovered, the rally continues to be classified as correctional rather than structural. As long as XRP remains below $2, the overall story remains one of distribution rather than recovery,” Mehta noted.
He then clarified that XRP is in the laterization zone and declared that “the rebound lacks impulsive characteristics.”
“XRP remains below the $1.87 to $1.90 zone where the previous breakout occurred. Barring continued acceptance above that zone, intraday strength remains corrected. Structure still favors consolidation over trend reversal,” he added.
For this reason, he believes that: XRP should close daily candlestick above $2.05. If you are successful, you will be able to get out of your risk zone.
“This could be the first sign that bearish control is weakening and prices could head towards higher resistance. If current levels are not sustained, attention will focus on the $1.75-$1.80 support zone, where a deeper demand test could occur,” he concluded.
(Tag translation) Altcoin
