XRP Price Shows Signs of Weakness with 3% Drop in Last 24 Hours
XRP has experienced a decline of over 3% in the past day, indicating a slowdown in momentum. The Relative Strength Index (RSI) has dipped below 40, signaling diminishing strength, while whale activity has remained static, suggesting that major holders are not currently accumulating.
Moreover, the Exponential Moving Average (EMA) lines are approaching a potential death cross, which could lead to further downside should selling pressure intensify. However, a breakout above key resistance levels could pave the way for a rally towards $4 in February.
XRP RSI Hovers at Neutral Levels Below 40
The current XRP RSI stands at 39.5, staying within a neutral range since its peak at 58 on January 28. The RSI measures price movement strength on a scale of 0 to 100, with readings above 70 signaling overbought conditions and below 30 indicating oversold conditions. A neutral RSI between 40 and 60 denotes consolidation.
With XRP's RSI near oversold territory, weak momentum is suggested, potentially leading to further downside if buying pressure does not increase. To target $4 in the near future, XRP would need the RSI to surpass 50, indicating renewed strength possibly driven by positive developments such as with its ETF or the resolution of the SEC lawsuit.
Stagnant XRP Whale Activity Since January 21
The number of XRP whale addresses, holding between 1 million and 10 million XRP, has not shown significant movement since January 21, hovering between 2,095 and 2,082 addresses. Monitoring whale activity is critical as their actions can impact market sentiment and liquidity.
For XRP to reach $4 in February, a resurgence in whale accumulation like seen in early January would be necessary. A similar accumulation pattern could reignite demand and drive another price surge.
Potential Downside Risk for XRP Price Amid EMA Death Cross
XRP's EMA lines hint at a possible death cross forming soon, indicating potential downside momentum. Failure to hold support at $2.82 could lead to further declines towards $2.6 and $2.32. On the flip side, breaking resistance levels at $3.03 may set the stage for a bullish run towards $3.4 and potentially $4, representing a substantial upside from current levels.