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XRP is once again at a crucial juncture as it attempts to break above the daily 50-day Simple Moving Average (SMA).
Since losing this critical support level in early February this year, XRP has made three unsuccessful attempts to retake it, with each rejection resulting in a retreat below the daily SMA 50.
Now on its fourth attempt, all eyes are on whether XRP can ultimately hold above this level and use it as a foundation for further gains.
The battle around the daily SMA 50 is key for XRP's short-term trend, as it could define its next major price move. If the XRP price successfully reclaims and holds above this level, it could act as a springboard for a sustained rally.
However, another rejection could lead to further downside pressure, continuing the pattern of failed breakouts.
A strong breakout necessitates increased trading volume and sustained buying momentum. In the last 24 hours, XRP's trading volume has dropped 3.68% to $2.76 billion, according to CoinMarketCap data. If rejected, XRP’s next support at $2.21 and $1.89 could determine the extent of a potential pullback.
Bullish or bearish outcome?
After three days of declines, XRP rebounded from the March 23 low of 2.38, indicating that bulls might be buying on dips. The subsequent day's rise pushed XRP above the closely watched daily SMA 50 at $2.42, close to where it currently trades.
At the time of writing, XRP was down 0.06% in the last 24 hours to $2.44. The doji candlestick on the daily chart may indicate that the market is indecisive, with bulls unable to push prices higher and bears not gaining momentum either.
If the XRP price successfully maintains above the daily SMA 50, bulls might gain an advantage and attempt to push it above $2.59. If they succeed, XRP might rise to $3, where sellers would likely stage a vigorous defense.
However, if the XRP price drops below the daily SMA 50 but remains above the $2.36 support, it might still indicate positive sentiment. To gain control, bears will need to pull the price below $2.20. That might pave the way for a retest of the crucial support at $2.