Despite significant bullish headlines, XRP is facing intense downward pressure, as the token has fallen nearly 5% in the last 24 hours and 8.5% over the past week. Several 'death crosses' of exponential moving averages (EMA) have formed in recent days, reflecting persistent weakness.
Even with announcements of $300 million investments from a Chinese generative AI company and the raising of $121 million for the treasury led by VivoPower, linked to Saudi Arabia, technical indicators suggest that sellers currently remain confident in their position.
XRP is entering the oversold zone.
The Relative Strength Index (RSI) of XRP has significantly decreased to 32.32, compared to 48.68 just a day earlier, indicating a sharp deterioration in short-term momentum.
This sharp decline reflects intensified selling pressure, pushing XRP to the edge of oversold territory without fully crossing it.
It is important to note that the XRP RSI has not dropped below 30 since April 7, indicating that while recent corrections have been sharp, they have not yet triggered deep oversold conditions seen during more serious market downturns.
The current value, close to 30, suggests that XRP is approaching a potential exhaustion point in the downward trend. If buyers intervene, the price may stabilize or attempt to recover.
This negative momentum is observed even after the Chinese generative AI company announced plans to invest up to $300 million in XRP, and after VivoPower raised $121 million for the XRP treasury, supported by the Saudi royal family. RSI is a widely used momentum indicator that ranges from 0 to 100, designed to measure the speed and magnitude of price movements. Values above 70 typically indicate overbought conditions and the possibility of a price decline, while values below 30 signal oversold conditions and potential price recovery.
With XRP slightly above this oversold threshold, the market is at a crossroads: further declines could push RSI below 30, attracting the attention of technical traders who are anticipating a rebound.
At the same time, stabilization at current levels may prevent deeper losses.
Considering that XRP has not dropped below 30 for nearly two months, a fall below this level now could trigger new volatility—either attracting bargain hunters or accelerating bearish momentum if support levels do not hold.
XRP: DMI indicates a strong bearish trend as ADX exceeds 34.
The Directional Movement Index (DMI) of XRP shows a significant change in the strength and momentum of the trend, with ADX rising to 34.78, compared to 27 just a day earlier.
ADX, or Average Directional Index, measures the strength of a trend without indicating its direction—values above 25 typically indicate a strong trend, and above 30 signifies a very strong trend.
The sharp rise in ADX confirms that the current trend is strengthening. However, the direction of this trend is made clear by the movement of the directional indicators: +DI has fallen to 8.57, while -DI has risen to 32. This widening gap between the directional indicators underscores a strong bearish trend. The decline in +DI indicates that bullish momentum is rapidly weakening, while the rise in -DI shows that selling pressure is intensifying.
Given that -DI is now significantly higher than +DI, and ADX confirms the strength of this movement, XRP appears to be in a sustained downward trend.
Unless there is a sudden surge in buying interest, the current situation indicates continued downward pressure in the short term, supporting what other indicators, such as RSI, have already signaled.
XRP risks falling below $2 as bearish momentum builds.
The exponential moving averages (EMA) of XRP have shown several 'death crosses' in recent days, reflecting persistent downward pressure as the token tries to regain positions below the $2.50 mark.
These bearish crosses, when short-term EMAs fall below long-term EMAs, indicate trend weakening and align with XRP's recent inability to return to bullish territory.
If the correction deepens, XRP might retest support at $2.07, and if this level fails to hold, it would open the way for a drop below $2, a price not seen since April 8. This would likely confirm a broader shift in market sentiment and potentially accelerate bearish momentum. However, the outlook may change if buyers regain control and XRP can reverse the trend. In that case, $2.26 is highlighted as a key resistance level; a successful breakout at this level may signal a restoration of strength and attract attention to the next growth targets at $2.36, $2.47, and even $2.65.
These resistance levels need to be overcome with convincing volume to negate the current bearish structure of the exponential moving average (EMA).
Until then, numerous 'death crosses' serve as a warning that downward pressure remains dominant unless bulls make a strong recovery.#BinanceSquare #Write2Earn #Binance #BinanceAlphaAlert #CEXvsDEX101 $BTC
