XRP: Lifeline Support Is Incoming
2024-12-29
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The performance of XRP is still a hot topic as the asset settles after its huge rally earlier this year. At $2.18, XRP appears to be biding its time until a major technical development occurs based on the current price action. The market will be caught up by the 50 EMA (exponential moving average) if the price stays at these levels for a few more weeks, which could lay the groundwork for a subsequent upward movement.
The gap is being gradually closed by the 50 EMA, which is presently trending below the price. In the past when there has been consolidation or retracement, this indicator has served as an important support zone. When the 50 EMA and XRP's price line up, it may offer solid technical support for the asset to return to its upward trend.XRPUSDT Chart by TradingView">
The RSI (Relative Strength Index), which is currently at 55.42, indicates that the recent rally left XRP in overbought territory, making this setup especially crucial. In addition to reducing selling pressure, a sideways movement period and the convergence of the 50 EMA may draw buyers seeking a steady entry point. The 50 EMA will reaffirm the $2.10-$2.20 range as a strong support zone if XRP is able to hold onto its current levels or undergoes a little retracement.
A possible breakout toward the next important resistance levels, which are $2.50 and $2.80, may result from this. However, the 100 EMA, which is presently trading close to $1.86, would probably provide the next support if XRP is unable to maintain this consolidation and breaks below the psychological level of $2.00.
A move of this kind might prolong the consolidation phase and postpone the expected recovery. The current positioning of XRP provides investors with a strategic opportunity to track the movement of the 50 EMA. This moving average's alignment with the price may serve as a bullish trigger paving the way for XRP to resume its upward trajectory in the upcoming weeks.