XRP Price Under Pressure as Bears Eye 2-Month Low

XRP has started the new week under pressure, facing mounting selling activity after a 6% price decline over the past seven days. 

Technical indicators suggest the token could experience further downside, potentially testing a two-month low in the coming sessions.

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XRP Momentum Turns Negative

Readings from the XRP/USD one-day chart indicate that the token’s Moving Average Convergence Divergence (MACD) has formed a bearish crossover, signaling that XRP has entered a renewed downtrend phase. 

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The MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines. 

A bearish crossover occurs when the MACD line crosses below the signal line, suggesting that selling pressure is building and that the asset’s upward momentum is fading.

For XRP, this is the first time the MACD has taken this shape since September 8, highlighting a shift in market sentiment from bullish to bearish. 

This could increase the downward pressure on XRP as traders usually interpret the setup as a signal to reduce positions and initiate selling. Furthermore, XRP’s price has plummeted below its 20-day exponential moving average (EMA), confirming the dip in bullish bias towards the altcoin.

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As of this writing, the key moving average forms dynamic resistance above XRP’s price at $2.97, keeping its performance muted.

The 20-day EMA measures the asset’s average price over the past 20 trading days, weighing recent price changes more heavily. 

When the price falls below the EMA, it signals that short-term selling pressure is increasing and that bearish momentum may be building. This puts XRP at risk of extending its decline over the next few trading sessions. 

XRP Bears Eye $2.39 While Bulls Target $2.87 Rebound

For XRP’s near-term price outlook, its next direction depends on whether bulls can defend the support floor at $2.63. If selloffs worsen and the price level fails to hold, XRP’s price could fall to $2.39, a low it last reached in July.

On the other hand, if buyer confidence strengthens and accumulation grows, the token’s value could rebound toward $2.87. A successful breach of this barrier could open the door for a rally above the token’s 20-day EMA and a push for $3.22.