Bulls were hoping for a big breakout after XRP's recent six-day green streak. But a descending trendline that is still stifling upward momentum and defining the asset's overall bearish structure has brought the rally to a standstill.
XRP, which is currently trading at about $2.22, tried to break above the 50 and 100 EMAs but was unable to maintain the move. The token's upward trajectory has been temporarily halted by these dynamic resistance levels, which are currently convergent close to the descending trendline.
For the short term, the inability to close convincingly above this confluence presents a technically cautious picture. All-time high levels were used to draw the descending trendline, which is still a strong resistance and has continuously driven XRP lower whenever the price has approached it. Until significant volume and momentum break through this level, XRP is unlikely to break out of its consolidation range. The moving averages narrowing is a further worry.
Any downward rejection from here could indicate a return to bearish territory because the 50 EMA is just below the 100 EMA. XRP may retrace the recent bullish attempts if it is unable to stay above the 200 EMA, which is at about $2.08. The relative strength index (RSI), on the other hand, is slightly above 46, suggesting a neutral position with potential for improvement. The volume is still mediocre and does not convey the zeal required to overcome such a strong barrier.
Overall the six-day climb was encouraging, but the rally might stall unless XRP can break above the descending trendline and decisively turn the 50 and 100 EMA resistance zone into support. To recover control, bulls require a powerful catalyst, either technical or fundamental. If not sideways, or even back toward support may be the next course of action.
