XRP is taking a bull breather a day after Donald Trump announced plans for a strategic token reserve alongside prominent cryptocurrencies like Bitcoin (BTC), Ether (ETH), Cardano (ADA), and Solana (SOL).
The payments-focused cryptocurrency experienced a remarkable rally, surging 25% within hours of Trump’s post on Truth Social and reaching a peak of $3. However, at the time of writing, XRP has since pulled back to $2.6, which coincides with a descending trendline originating from the January 16 highs.
Technical indicators reveal a mixed market sentiment. The relative strength index (RSI), which gauges market momentum, soared to 70 late Sunday before retreating to 48. This transition from overbought conditions suggests the potential for a renewed upward movement, although caution is warranted.
Prices currently sit below the 50-hour simple moving average (SMA) at $2.65, indicating short-term weakness. Conversely, the broader 200-hour SMA at $2.50 continues to provide a strong support level that remains unbroken.
The Moving Average Convergence Divergence (MACD) on the hourly chart also reflects shifts in momentum, as its line crossed below the signal line at $3, confirming a bearish sentiment emerging post-rally.
Key Levels
According to the 20-hour Bollinger Bands, which outline price volatility, the upper limit stands at $2.9 while the lower limit is at $2.4. With current prices stabilizing in the middle at $2.6, we observe reduced volatility following the earlier surge.
The prior rally to $3 has seemingly exhausted buying pressure, amplified by the RSI reaching 70 and a MACD crossover, both of which support the idea of a pullback. The recent breach of the 50-hour SMA indicates that short-term bearish control has been established; however, the 200-hour SMA at $2.5 remains a critical support level to watch.
As of now, XRP’s current price at $2.62 represents a pivotal point: a break below $2.50 could signal further declines, whereas a movement above $2.65 might target the $3 level and potentially higher. Momentum seems to favor bears in the short-term, so speculators would do well to monitor volume and look for a decisive move for optimal positioning.
