XRP has started a new week under pressure in the face of installation of sales activities after a 6% drop in prices over the past seven days.
Technical indicators suggest that tokens may experience additional downsides and test a two-month low in future sessions.
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XRP momentum is negative
Measurements on the XRP/USD one-day chart show that the token’s moving average convergence divergence (MACD) formed a bearish crossover, indicating that XRP has entered an updated downtrend phase.
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MACD indicators identify trends and momentum in price movement. This helps traders find potential purchase or sale signals through a crossover between the MACD line and the signal line.
The bearish crossover occurs when the MACD line crosses beneath the signal line, creating sales pressure, suggesting that the upward momentum of the asset is waning.
In the case of XRP, this is the first time MACD has taken this form since September 8th, highlighting the shift in market sentiment from bullish to bearish.
This increases the downward pressure of XRP as traders typically interpret the setup as a signal to reduce position and start selling. Additionally, XRP prices fell below the 20-day index moving average (EMA), confirming a dip of bullish bias against Altcoin.
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At the time of writing, the major moving average has formed dynamic resistance that is $2.97 above the XRP price, continuing to suppress performance.
The 20-day EMA measures the average price of assets over the last 20 days, giving a greater rating of recent price changes.
When prices fall below EMA, short-term sales pressures are increasing, indicating an increase in its bearish momentum. This risks XRP extending its decline over the next few trading sessions.
XRP Bears Eye $2.39, Bulls target $2.87 rebound
For XRP’s short-term price outlook, the next direction will depend on whether the Bulls are able to protect the support floor for $2.63. If the selling gets worse and the price level isn’t retained, the XRP price could drop to $2.39, reaching its last in July.
Meanwhile, as buyers’ trust is strengthened and accumulation increases, the value of the token could rebound to $2.87. A successful violation of this barrier allowed the door to open for a rallies that surpassed the 20-day EMA of tokens and a $3.22 push.
