XRP struggles to sustain uptrend amid declining risk appetite
XRP's price is sliding toward confluence support at $2.25, established by the 50-day Exponential Moving Average (EMA) and the 100-day EMA, after facing rejection at around $2.32.
The unsteady uptrend suggests that market sentiment remains strikingly cautious, especially with US-China trade talks in focus.
The Relative Strength Index (RSI) is sideways at the 50 midline, indicating a lack of conviction and confidence in the uptrend. Should the RSI slip below the midline, losses could extend 8% below the current level to test the support provided by the 200-day EMA, which is around $2.08.
A sell signal from the SuperTrend indicator validates XRP's downside vulnerability. This indicator signals traders to consider selling XRP when the price falls below the SuperTrend line, changing its color from red to green.
Traders often utilize this trend-following tool as a dynamic support and resistance. In other words, XRP could uphold the bearish bias as long as the SuperTrend stays above the price.
OI refers to the total number of outstanding futures and options contracts that have not been settled or closed. Therefore, an increase in OI alongside the trading volume underlines growing interest in XRP, backed by rising market participation.
If the trend persists, the price of XRP could uphold the short-term support at $2.25, allowing bulls to resolve the technical outlook with a potential 30% breakout to $3.00 from the current price level.