Key Takeaways:
– XRP bearish trends build up after bulls fail to reclaim the $2.9 height, marking a fresh price decline and underlying support pressures.
– On the 4-hour timeframe, XRP exhibits negative sentiment, possibly dropping below 100-day SMA and moving downwards to the $1.9 support level.
– Trend lines from the Composite Trend Oscillator fall below the SMA line on the 4-hour chart, hinting at momentum change toward bearish market sentiments.
– XRP continues to display downward movement on the daily chart, with a bearish candlestick after a failed surge toward a previous high of $2.9.
– The 1-day Composite Trend Oscillator indicates increasing bearish momentum, as the signal line moves below the SMA.
– Key support levels at $1.9, $1.7, and potentially $1.3 become crucial in determining XRP’s next move if bearish momentum continues.
Downward Market Sentiment Dominates XRP on 4-Hour Chart
Bulls in the XRP market might find it challenging to regain control over the current price trend. This is particularly noticeable on the 4-hour chart where signs of bearish pressure are distinctly evident, bubbling up concerns about the strength of the bulls. Amid these apprehensions, the price of XRP is swirling around its previous support levels after failing to retain its prior peak at $2.9.
As a result of this downward trajectory, the focal point shifts to other vital support zones. Here, the bulls will be tested on their resilience against the descending movement, a necessary move to prevent the digital asset from experiencing a larger correction.
Composite Trend Oscillator Drops Below SMA: Signals Possible Momentum Shift
The 4-hour chart analysis further narrows down the pessimistic sentiments. The Composite Trend Oscillator’s trend line has dipped below the Simple Moving Average (SMA) indicating a possible momentum directional change. As it verges on the zero line, the struggle to uphold ascending movements reflects moderate bearish pressure leading to a hesitant market sentiment. If the signal line continues to plunge, it could trigger an increase in selling activity.
Daily Timeframe Highlights Bearish Momentum in XRP
Moving over to the daily chart, XRP displays significant downtrends. The dominant feature is a bearish candlestick after a failed recovery attempt to ascend toward its previous high of $2.9. The failure to maintain an uptrend indicates a lack of buyer confidence and a prevailing pessimistic sentiment in the market.
Increasing selling pressure could result if XRP continues to target the $1.9 support level, consequently raising worries about a potential breakdown. The 1-day Composite Trend Oscillator further signals an escalating bearish momentum. Here, the indicator’s signal line has dropped below the SMA after hovering in the overbought zone.
The Next Moves for XRP: $1.9 as an Initial Buffer
As XRP struggles with renewed negative pressure, the significance of key support levels escalates. The immediate level to monitor is $1.9, which is likely to buffer against additional declines. A sustained breach below this level could pave the way for a deeper descent toward the $1.7 support level. If bearish momentum does not dissipate, the $1.3 price level could potentially serve as the last defense before a wider selloff ensues.
In conclusion, the incline up to $2.9 for XRP, which seemed promising in the initial stages, now appears fraught with risks. The digital asset now faces significant downward pressure from an increasingly bearish market. However, the bulls stand ready to defend the current price levels, putting up a fight to reclaim control and deter additional price degradation.