XRP Market Analysis: A Brief Respite Following Trump’s Announcement
XRP is currently experiencing a temporary pause in its bullish momentum, just one day after former President Donald Trump revealed plans for a strategic token reserve that would include popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Solana (SOL). Following Trump’s post on his platform, Truth Social, XRP saw an impressive surge of 25%, reaching a peak of $3. However, at the time of writing, the price has retracted to approximately $2.60.
The recent price movement has brought XRP back to the descending trendline established from the highs observed on January 16. A closer look at various technical indicators reveals that the relative strength index (RSI), which gauges the pace of price changes, surged to 70 late on Sunday. Since then, it has retreated to 48, moving away from the overbought territory that was noted earlier, suggesting the potential for another upward movement.
Despite the slight pullback, XRP’s price remains below the 50-hour simple moving average (SMA) of $2.65, which indicates a degree of weakness in the market. On a broader scale, the 200-hour SMA, positioned at $2.50, continues to provide solid support.
The Moving Average Convergence Divergence (MACD) indicator on the hourly chart signals a shift in momentum. The MACD line has crossed below the signal line at $3, now resting below zero, which confirms a bearish sentiment following the recent rally.
Key Levels to Watch
The 20-hour Bollinger Bands, which help define price ranges, indicate that $2.90 serves as the upper boundary while $2.40 is the lower limit. With the current price hovering around $2.60, this positioning illustrates a period of reduced volatility after the earlier spike. The rally that propelled XRP to $3 appears to have exhausted the buying pressure, as evidenced by the RSI hitting 70 and the MACD crossover, both of which support the notion of a pullback.
The breach of the 50-hour SMA suggests that short-term bearish control is taking hold, but the critical support level remains intact at the 200-hour SMA of $2.50. The current trading price of $2.62 is at a pivotal point: a break below $2.50 could lead to further declines, while a movement above $2.65 could set sights on the $3 mark and beyond.
In summary, the market sentiment currently leans toward bearish in the short term. Traders and speculators should closely monitor trading volume and watch for decisive price movements to inform their positioning strategies.
