Is reclaiming $2 a fantasy?...XRP indicators warn of a harsh collapse scenario

▲ XRP

As XRP has moved past its recent rebound and entered a period of consolidation within a box range, the market's expectation of reclaiming the $2 mark is gradually fading.

Crypto media outlet U.Today analyzed in its report on April 21 (local time) that the XRP price is hovering in the $1.40 range, above the short-term support level of around $1.38. U.Today diagnosed that this trend signifies a temporary balance between buyers and sellers rather than the beginning of a strong bullish reversal. From a structural perspective, XRP remains below the downward-trending 100-day and 200-day moving averages, failing to completely shake off the market's pessimistic outlook.

Each attempt at a price increase has met with considerable resistance from sellers. A representative example is the recent attempt to break through the resistance level near $1.50, which was thwarted by selling pressure. Based on the daily chart, the Relative Strength Index (RSI) is approaching the overbought zone, moving beyond the neutral area, suggesting that the recent upward momentum has been excessively expended. When the index reaches such high levels, there is a higher probability of a cooling-off period or a temporary price pullback rather than further sharp price increases.

Trading volume data also supports this cautious view. While trading volume temporarily surged at the beginning of the rebound, subsequent sustained buying interest did not follow, causing it to lose its breakout momentum. Current trading volume has returned to normal levels, which is characteristic of a typical sideways market. For XRP to realistically achieve its $2 target, a reset process where the overheated RSI falls to a neutral level, along with a breakthrough of resistance accompanied by sustained trading volume, must precede it.

In conclusion, considering the current indicators and market environment, the likelihood of XRP breaking above $2 in the near future is low. Without a fundamental change in trend or an improvement in momentum conditions, there is a high risk that the price will turn down again, pushed by selling pressure near resistance levels. Investors should not be swayed by simple price fluctuations but should calmly observe the resetting of momentum indicators and the recovery trend of trading volume before reacting.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*