XRP's struggle to maintain bullish momentum despite positive news can be attributed to several factors.
- *Technical Indicators*: The Relative Strength Index (RSI) has dropped below the neutral 50.00 level, indicating fading bullish momentum after being overbought Additionally, the Awesome Oscillator's (AO) red histogram bars point to weakening momentum for XRP .
- *Resistance Levels*: XRP faces strong resistance levels at $2.60 and $2.90, which may be hindering its upward movement .
- *Market Sentiment*: Despite breaking out of a long-term descending triangle and signaling a major shift in market sentiment, XRP revisited its prior high after a 22% decline .
- *Short-term Correction*: The divergence in XRP's price suggests that bullish momentum could be slowing, increasing the likelihood of a short-term correction .
However, it's worth noting that some analysts remain optimistic about XRP's long-term potential, citing the formation of three consecutive bullish pennant patterns on the 4-hour chart, which could signal strong upward momentum .