XRP's Momentum Fades: Can It Rebound or Will Bearish Trend Resume?
The cryptocurrency XRP has seen its price surge in recent days, but now it's losing steam. The XRP, linked to Ripple, saw a significant gain of 46% over seven days, surpassing a market capitalization of $91 billion.
However, as with any sudden rise, the trend is likely to reverse, and the price has already started to decline, falling by up to 2% at the beginning of the day. Among the top 10 cryptocurrencies, XRP's drop is one of the most moderate.
The long-term trend for XRP remains bearish, with the 'death cross' formation still active. This means that despite the recent strong rally, the short-term moving average (50-day EMA) is below the long-term moving average (200-day EMA), indicating a potential downward trajectory in the medium term.
The Relative Strength Index (RSI) of 76.8 suggests that XRP is overbought and due for a correction. To confirm an upward trend, XRP needs to recover and hold above $1.5507, allowing it to reach targets at $1.5824 and $1.6227.
On the other hand, if XRP fails to maintain its current level and drops below $1.4342, the price could fall towards $1.40 and potentially revisit its August low of $1.00.