XRP Just Made Its $3 Life Harder

The most recent price movement of $XRP has put the token in a difficult technical position. The asset experienced severe profit-taking following an astounding July rally that brought prices near $3.60. As of right now, it is trading at about $3.21. The issue is that a recently formed descending trendline resistance that stretches from the late-July peak now hangs directly overhead.

This technical barrier could make it much more difficult to regain higher ground in the near future. Since $XRP has already been rejected twice by this trendline, its significance as a temporary ceiling has been reaffirmed. The token faces additional pressure unless bulls can decisively break through it, especially now that momentum has begun to slow.

$XRP's difficult position

Compared to the overbought levels we saw during the previous rally, the RSI, which is currently at 56, indicates a more neutral sentiment. Broadly speaking, $XRP continues to hold a bullish structure with the 50-day EMA ($2.79) and 100-day EMA (~$2.46) below the 20-day EMA ($3.05), which is serving as immediate support.

These moving averages might close the gap if the price action stays erratic beneath the trendline, which could provide a strong foundation for the subsequent significant push. In the short term though that process might entail more sideways or marginally downward price movement. A strong close above the declining trendline (~$3.35) might restore momentum and pave the way for a move toward $3.60 and, if volume holds, $4.00.

$XRP's new resistance

If the resistance is not broken, $XRP may return to $3.05 or even $2.80, where the 50-day EMA may serve as a potent bounce zone. The consolidation phase that $XRP is currently going through could either serve as a prelude to its next rally or signal the beginning of a more significant correction. In upcoming weeks, patient bulls might find better technical footing as the moving averages gradually rise, but for now, holding the $3 level has simply become much more difficult.