The 100-day Exponential Moving Average (EMA) has provided support for XRP after a significant price correction, marking a significant turning point in the cryptocurrency's recent decline. Since its recent highs above $3.00, XRP has lost more than 2% of its value in the last day, and it is currently trading at $2.27.
A significant rising trendline has been broken by the asset, suggesting a possible change in the market's structure. In the past, the 100 EMA has not been a solid basis for a reversal but rather a temporary level of support. Before making their next major move, many assets, including XRP frequently experience brief consolidations around this moving average. If buyers do not intervene, the likelihood of additional downside is still high because selling pressure is still present.
Near $1.72, where the 200 EMA is currently located, is the next significant support if XRP is unable to hold above the 100 EMA. Bulls would need to protect this level because a decline below it might start a protracted bearish phase.
In a bullish scenario, XRP might try to reclaim the $2.50-$2.75 range if it stabilizes above the 100 EMA and experiences fresh buying interest. A break above $2.75 would restore bullish momentum and suggest a possible recovery.
In case bears gain the upper hand and the 100 EMA does not hold, XRP may drop even lower to $1.72, where there is more solid support. The market could become even more uncertain if there is a breakdown below this level, which could prolong losses toward $1.50.
Even though XRP has reached its first significant support, history indicates that this could just be a short-term halt before the market determines its next course. Traders can predict XRP's next move by keeping an eye out for volume spikes and general market sentiment.
