In spite of the recent decline on the overall cryptocurrency market, XRP has been able to maintain one key technical and psychological level: $2. Since the 200-day Exponential Moving Average is currently hovering just above this level, the asset's long-term trend indicator is acting as a structural support zone, providing a buffer that could at least temporarily stop further declines.
According to the chart, the price of XRP fell by almost 7% on the daily candle, putting it in danger of hitting the $2.00 mark. But the asset bounced just off the 200 EMA, which is now at $1.99, and avoided a complete breakdown. Historically, this region has been crucial for XRP, frequently shifting between resistance and support based on the trend cycle.
The main lesson here is that even though XRP is not yet in bullish territory, this EMA line provides much-needed breathing room. It serves as both a psychological milestone for traders who are closely observing and technical reinforcement. Restoring bullish momentum is possible if XRP can consolidate above this line - but that is a big if.
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The absence of adjacent support levels above the 200 EMA makes this setup more difficult. After breaking through the 50 and 100 EMAs in the last few days, XRP is currently in technical limbo. A retest of the 200 EMA is likely given the diminishing volume and lack of significant buying pressure. This could prove to be a pivotal point in the current cycle for XRP.
If the $2.00 range does not hold, XRP could enter a more extensive correction phase, with the next significant support only showing up near $1.80. The digital asset is currently buying itself some time, but its lifelines are running low.