XRP, lost the initiative in the rally... $1.4 support threatened

▲ XRP (XRP)/AI generated image

XRP has lost its short-term upward momentum and turned into a downtrend, repeatedly failing to break through the strong resistance level around $1.45.

According to crypto-specialized media NewsBTC on April 28 (local time), XRP recently formed a high of $1.4471, then was pushed back by intense selling pressure, falling below the 100-hour simple moving average. Unlike the steady performance of Bitcoin (BTC) and Ethereum (ETH), XRP recorded relatively poor results, entering a short-term bearish zone. Market analysts diagnosed that XRP's upward initiative rapidly shifted to the selling side as it broke below the uptrend line that had formed around $1.43.

Technical indicators weigh on the possibility of further downside for XRP. Currently, XRP is trading below $1.4120 and the 100-hour simple moving average, and is encountering resistance around the 23.6% Fibonacci retracement level of the downtrend wave, at $1.4010. The Moving Average Convergence Divergence (MACD) is increasing its bearish momentum in the bearish zone, and the Relative Strength Index (RSI) has fallen below 50, indicating a cooling of investor sentiment. Experts predicted that if XRP fails to break through the primary major resistance level of $1.4150 with accompanying trading volume, support line tests will be repeated.

The primary downside support level is formed at $1.4, with the recent short-term low of $1.3835 identified as the next support zone. If selling pressure intensifies and the $1.3835 level breaks, there is a risk of a rapid retreat to $1.35 or the 61.8% Fibonacci retracement level. On-chain data analysis also shows some whales liquidating their holdings at current price levels, further contributing to the downward pressure.

For an upward reversal, XRP must first break through the resistance walls at $1.4150 and $1.4250, respectively. In particular, $1.4250 is considered a critical turning point to halt the recent decline and reverse the trend. Only by successfully settling in this range can it get an opportunity to re-challenge $1.4450 and the psychological last line of defense at $1.45. However, the current market structure shows sellers forming thick selling walls at each upper resistance level, making a breakthrough difficult.

As liquidity in the overall virtual asset market concentrates on large assets, XRP's position is narrowing. Investors express concern about the lack of real price upward momentum even after Ripple secured legal clarity, maintaining a cautious attitude. XRP is currently fighting for survival between the downward resistance line and major support lines, and the release of macroeconomic indicators continuing until early May is expected to be a decisive catalyst for future price movements.

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