Liquidity Or Liability? History’s Hard Lessons For The XRP Momentum Play
XRP continues to face persistent selling pressure, with price action showing limited momentum as broader crypto market conditions remain fragile. The token has struggled to establish a clear recovery trend, reflecting cautious investor sentiment and subdued speculative activity. While volatility has eased compared with previous sharp moves, the lack of strong buying conviction suggests the market remains in a consolidation phase rather than a confirmed rebound. From a trend perspective, XRP is trading below its major moving averages, which are now sloping downward. This alignment typically reflects a bearish medium-term structure, where rallies tend to encounter resistance rather than trigger sustained upside continuation. The inability to reclaim these averages reinforces the idea that momentum currently favors sellers.Related Reading
Volume dynamics also deserve attention. The latest drop was accompanied by elevated activity compared with preceding consolidation phases, indicating active participation in the selloff rather than thin liquidity moves. Historically, such spikes can precede either capitulation lows or continued downside, making confirmation essential.
Technically, a sustained recovery above the $1.80–$2.00 region would be needed to stabilize sentiment. Until then, the broader structure suggests caution, with consolidation or further downside remaining plausible scenarios while market confidence rebuilds.
Featured image from ChatGPT, chart from TradingView.com
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