What to Know:
- XRP has broken below key support levels, triggering concerns among analysts.
- The 20-month EMA at $1.90 is critical; a monthly close below this could signal further downside.
- Despite price weakness, XRP ETFs are drawing significant trading volume, indicating continued institutional interest.
XRP is currently trading under pressure, having recently broken below key support levels, raising concerns among investors. The digital asset has experienced a nearly 10% drop in the past 24 hours and about 16% over the week. Increased sell-side volume suggests a potential shift in market momentum.
The breach of the falling wedge pattern on the 4-hour chart, confirmed by Alpha Crypto Signal, underscores the bearish sentiment surrounding XRP. With the price now below both the 20-period EMA and the 50-period SMA, a recovery hinges on reclaiming former support levels. As long as the price remains below the broken trendline, the bearish bias is expected to persist.
“As long as price stays below this broken trendline support, the bearish bias remains intact,”
ChartNerd highlights the significance of the 20-month EMA at $1.90, noting its historical importance as a launchpad for strong upside trends. A monthly close below this critical level could disrupt the existing market structure. Traders are closely monitoring Bitcoin, with $87,000 identified as a crucial level to hold to support the broader crypto market.
“We MUST see November close out above this key moving average, or down we go kids,”
Despite the price downturn, the launch of XRP ETFs, such as the Bitwise XRP ETF and the Canary XRPC ETF, has attracted substantial trading volume. This ongoing institutional interest suggests a continued, albeit cautious, engagement with XRP. Analysts are closely observing how this trend evolves amidst broader market volatility and position adjustments by large holders.
In conclusion, XRP faces immediate challenges as it navigates through critical support levels. While technical indicators point to potential further downside, the launch and trading volumes of XRP ETFs reflect a sustained interest from institutional investors. Monitoring key levels and broader market trends will be crucial for understanding XRP’s next move.
Source: Original article
