Several factors have contributed to XRP's sluggish momentum, creating persistent selling pressure this month. Among the main motivators are technical breakdown patterns; XRP has confirmed a bearish 'head and shoulders' formation, which predicts further declines to $2.
The token has struggled to maintain momentum above the critically important support level of $2.2, leading to numerous rejections and a decline in buyer confidence. If its 50-day EMA rejects it, XRP may continue to fall and retest its next daily support level at $1.96.
Strong bearish momentum is evident on the daily chart, with RSI at 45, below the neutral level and trending downwards. Additionally, the MACD indicator on the daily chart has shown a bearish crossover, signaling a sell-off and a downward trend.
Established financial institutions like Standard Chartered provide the most reliable forecasts, predicting that XRP is likely to reach $5.50 by the end of 2025, primarily due to expected ETF approvals and growing interest. XRP may soon challenge its historical resistance level of $3.4 if investor confidence picks up.
Factors such as Judge Torres' ruling, SEC's appeal strategies, and ETF-related news will impact XRP's short-term outlook. A breakout above $2.2 may indicate a move towards the 50-day EMA.
Prolonged movement above the 50-day EMA may lead to $2.5 and a maximum of $2.68 on May 12. However, if the 200-day EMA declines, bears may target levels below $2 and a support level of $1.9.