XRP: $3 Dream Looks Crushed

Tech

XRP: $3 Dream Looks Crushed

The much-anticipated move toward $3 appears to be getting farther and farther away, and XRP‘s attempt to regain higher levels seems to be losing steam. The token is currently trading at $2.184, having fallen into a precarious position after losing steam during its most recent surge. A breakdown from a consolidation triangle is depicted in the daily chart’s structure, giving bulls little leverage to raise the asset.

Key reasons for drop

XRPs $3 dream appears to have been dashed for the following three reasons:

• In a symmetrical triangle, which is frequently a continuation pattern that could result in a breakout or a breakdown, XRP was consolidating. Unfortunately, XRP was forced below the lower trendline as sellers took control.
• At $2.95 to $3.00, the token is currently trading below important resistance zones, making that area a strong barrier. It is unlikely that these levels will be reclaimed in the near future unless XRP makes a swift recovery.

  XRP/USDT Chart by TradingView

• The volume profile of XRP at the moment indicates waning interest, and volume tells the story of conviction. The decline in daily trading activity since mid-August indicates a lack of enthusiasm on the part of both buyers and sellers. Strong demand and inflows are required for XRP to rise to $3 or above, but neither is the case. Rather, the absence of involvement exposes the asset to additional downside risk.
• Breakdown scenario

Indicating waning bullish momentum, the 50-day EMA has flattened and is starting to curl downward. At $2.77, XRP is just about holding onto support from the 100-day EMA. The 200-day EMA at $2.51, which would validate a more profound correction and disprove short-term bullish expectations, could be the next stop if this support fails.

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It appears that the $3 target is currently crushed due to bearish technicals, declining volume and increasing moving average pressure. XRP would have to recover $3 on high volume in order to change sentiment, which is a difficult task given the current climate. Otherwise, there is still a chance that the path of least resistance will decline toward $2.50 before any significant recovery effort is made.