XRP faces downside risks above the 50-day EMA.

XRP’s price falls sharply on Monday but holds above support at $2.28, as provided by the 50-day EMA. This follows a drawdown from last week’s high of $2.65, plausibly triggered by potential profit-taking among traders and sentiment in the broader cryptocurrency market, which deteriorated significantly on Monday.

Based on the Relative Strength Index (RSI) indicator’s retreat to the midline of 50 from near-overbought conditions, the path with the least resistance could shift strongly downwards, especially if the RSI slides further toward the oversold region.

Support at the 50-day EMA and the 100-day EMA, slightly below $2.25, is critical for resuming the uptrend, eyeing a return to $3.00. Beyond the two moving averages, declines could accelerate to retest the descending trendline and the 200-day EMA at approximately $2.00.

The uptrend in the Money Flow Index (MFI) implies that more money is flowing into XRP than the outflow volume. In other words, trader interest remains steady despite the recent pullback.