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With the token forming its first notable bearish signal since the recent surge, XRP’s explosive rally may be coming to an end. The provided chart indicates a lower high, which could indicate that the current uptrend is losing momentum. Indicators of a possible price reversal, such as this development, could result in additional retracement in the days ahead.
Because it frequently signals the start of a downtrend, the lower high signal is especially worrisome for those who are bullish on XRP. There is a chance that selling pressure will increase, since XRP has failed to break its previous peak, especially if volume keeps declining as it has in recent trading sessions. Maintaining a rally requires volume, and a decline in it frequently indicates waning investor interest or profit-taking activity. Investors keeping an eye on XRP should pay particular attention to three crucial price levels.
The first is $2.30, a close-by support level that might hold in the near future. The next major support if this level fails is located at $1.275. This region may serve as a more robust barrier against additional losses because it aligns with the asset’s prior consolidation zone. If selling pressure increases past this point though, XRP may test $1.13, which is in line with the 50-day EMA and a crucial psychological support level.
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To invalidate the bearish signal and restore bullish momentum, XRP needs to recover $2.80. A considerable increase in volume indicating a resurgence of buyer confidence would be necessary to accomplish this. Despite XRP’s remarkable rally, this lower high formation should be taken as a warning.
When preparing their strategies, investors should take these important levels into account and be ready for possible volatility. XRP’s response in the upcoming sessions will determine whether this signal signals the beginning of a long-term correction or a brief setback.
Source: https://u.today/xrp-forms-first-major-bearish-signal