Technical Outlook: Can XRP Bulls Defend Against Further Declines?

XRP price action continues to show signs of weakness after failing to hold above key moving averages. The token currently trades under the 50-day Exponential Moving Average (EMA) at $2.93 and the 100-day EMA at $2.83, both of which have now flipped into resistance. This setup reflects the growing risk-off sentiment that has weighed on the broader crypto market since the beginning of the week.

Momentum indicators reinforce the bearish picture. The Relative Strength Index (RSI) has gradually fallen to 40, signaling fading bullish strength and the possibility of XRP slipping deeper into oversold territory. If the RSI moves lower, selling pressure could intensify, raising the probability of XRP breaking below its short-term support at $2.70.

The Moving Average Convergence Divergence (MACD) indicator also maintains a sell signal that has persisted since Monday, further discouraging bullish participation. As long as the MACD’s blue line holds below the red signal line, traders and investors are likely to reduce their exposure, fueling continued downward pressure on the token.

However, the $2.70 support remains a crucial line in the sand for XRP bulls. A rebound from this level is still possible if dip-buying emerges or broader market sentiment improves. Such a move could spark a recovery toward the $3.00 psychological level, which remains a key resistance area for XRP to reclaim if it hopes to reverse the current bearish trend.

In the near term, XRP faces an uphill battle. The inability to regain control above the moving averages, combined with weakening momentum indicators, suggests that the path of least resistance remains to the downside unless market conditions shift decisively in favor of the bulls.
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