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Popular cryptocurrency XRP is going through some major trading action as it faces the second consecutive test of its 200-day moving average on the daily time frame. The key support level, marked by the fat red line on the chart below, is proving pivotal for the asset's ability to hold above.
On April 7, XRP dipped below the 200-day moving average for a bit but bounced right back up, showing that this level is important for both psychology and structure. The area just under $1.85 has been a major demand zone lately, and it has a lot of horizontal support from late 2024.
This recent test comes after a bit of a slowdown in XRP's multimonth rise that started in the last quarter of 2024. The asset surged into early 2025 but has since hit a wall around the $2.30 zone, right where its 50- and 100-day moving averages are.
As these short-term indicators start to go down, the pressure is on the 200-day support to hold.
Scenarios
Price action has recently been all over the place, but the motto is simple and understandable. If XRP closes below the 200-day average, it could lead to a deeper correction, possibly down to the $1.60 range or even lower, where the next high-volume support area is.
On the other hand, if XRP can stay above this level for a few more days, it could give bulls some confidence, and we might see a short-term bounceback up to the $2-$2.20 range. The market is pretty indecisive right now, and the outcome of this test is going to be very important.
As of the latest daily close, the altcoin is trading at $1.88.