$XRP : $2 Level is At Risk
At $2.10 XRP is at a pivotal point in its price history pushing both psychological and technical limits. The asset is now clearly tired after a protracted rally that lifted it above the $2 mark. The subsequent sessions may decide whether XRP maintains its gains or enters a more significant correction as the current structure indicates that momentum is ebbing. XRP is situated directly on the 200-day EMA, a significant long-term support level on the chart. When broken this zone frequently indicates a change into a more bearish phase but it usually serves as a buffer during downtrends.
The recent short-term moving average behavior is making matters worse: the 50 EMA is about to cross below the 10 EMA, a bearish crossover that usually indicates increasing downward momentum. The price point of $2 to $10 itself, a crucial psychological level, adds to the tension. Market sentiment has relied on holding above this level but if it breaks down the next leg could be a steep decline.
Investors are keeping a close eye on XRP because a failure here could lead to a decline with little support between $1.85 and $1.90. The setup is currently leaning bearish but some people may still hold onto bullish hopes. Unless there is a resurgence of strong buying pressure the 200 EMA may not hold as the assets short-term strength declines.
In that case XRP’s $2 breakout will not be viewed as the start of a long-term rally but rather as a bull trap. The lesson is that $2 is now a make-or-break line rather than just a number. If you lose it XRP’s correction could be much more severe.