According to U.Today, XRP's recent rally may be losing steam as the token forms its first significant bearish signal since its recent surge. The emergence of a lower high suggests that the current upward trend might be weakening, potentially leading to further retracement in the coming days. This development is particularly concerning for XRP enthusiasts, as a lower high often marks the onset of a downtrend. The inability of XRP to surpass its previous peak, coupled with declining trading volume, raises the possibility of increased selling pressure. A sustained rally typically requires robust volume, and its decline may indicate diminishing investor interest or profit-taking activities.
Investors monitoring XRP should focus on three critical price levels. The first is $2.30, a nearby support level that could hold in the short term. If this level fails, the next significant support is at $1.275, which aligns with the asset's previous consolidation zone and may act as a stronger barrier against further losses. However, if selling pressure intensifies beyond this point, XRP might test $1.13, which corresponds with the 50-day EMA and serves as a crucial psychological support level.
To counter the bearish signal and regain bullish momentum, XRP needs to recover to $2.80. Achieving this would require a substantial increase in volume, indicating renewed buyer confidence. Despite XRP's impressive rally, the formation of a lower high should be viewed as a cautionary signal. Investors should consider these key levels when formulating their strategies and be prepared for potential volatility. XRP's performance in the upcoming sessions will determine whether this signal marks the beginning of a long-term correction or merely a temporary setback.
