- XRP price action has been modest as the rally has stuck within a major descending trend following a rejection above $0.7
- Besides, the major technical indicators specify that the crisis may deepen as the price achieves a breakdown from the pivotal levels
With a nearly 10% drop in the past week, the XRP price began the weekly trade on a bearish note, indicating the possibility of a fresh dump in the coming days. After breaking down below the crucial 200-day MA levels, the bulls lost momentum, causing a steep drop and breaking the pivotal support level. Alongside, a bearish EMA cross may also be achieved soon, which likely confirms the dominance of bearish momentum, which enhances the risk of continued decline.
Now that the bulls continue to remain aloof, will the XRP price lead to a potential drop below $0.5?
A few days ago, huge negative sentiments flew in towards XRP following a popular exchange blocking a $15 billion XRP transfer. This made the traders more fearful, which drove the levels significantly low. Besides, the token’s performance has been middling since 2024, and the RSI has continued to be low, due to which an upside in the FUD continues to remain high.
As seen in the above chart, the XRP price is trying hard to trigger a rebound at the crucial support zone that it has done before. However, the possibility appears to be extremely low, as the technicals are to blame. As mentioned earlier, a bearish MA cross-over is coinciding with the declining RSI, which stands at 35.33. Amid the alarming technical set-up, the descending volume signals a lack of conviction, which has failed to attract new buying interest.
Regardless of the bearish market signals, if the XRPArmy displays strength, then a rise above the strong resistance at $0.6 may squash the bearish scenario to some extent. But a breach above the resistance of the descending triangle may trigger a fresh bullish action. However, the bullish scenario remains distinct at the moment, as the XRP price displays a huge possibility of a continued bearish trend. In such a case, the support level is at $0.42 and needs to be closely watched in the coming days.
