XRP price could avoid a potential crash of 30% if the bulls can reclaim a key trendline, a move that has previously preceded double-digit rallies.
XRP (XRP ) price has recovered from its low of $1.76 reached on Feb. 3, but it’s still trading below a key resistance level. Will XRP’s price drop further in the coming days?
XRP/USD daily chart. Source: Cointelegraph/ TradingView
Last week’s crash in XRP price saw it breach the 50-day simple moving average (SMA), which historically had acted as strong support since Nov. 10.
Read more,H1: XRP Struggles to Reclaim Key Trendline Amid Market Uncertainty
H2: Key Points
**Market Movement:**
XRP has recently recovered from a low of $1.76 on February 3, but it continues to struggle below a crucial resistance level. The cryptocurrency has previously broken below the 50-day simple moving average (SMA), a support level that had held strong since November 10. Reclaiming this trendline could be critical for avoiding further losses.
**Regulatory Updates:**
The article did not specify any new regulatory updates affecting XRP directly. However, regulatory shifts in the broader cryptocurrency market continue to impact investor sentiment and market dynamics.
**Industry Insights:**
Technical analysis suggests that reclaiming the 50-day SMA could lead to significant price recoveries based on historical data. Previous instances when XRP reclaimed this level were followed by substantial rallies, highlighting its importance as a technical indicator for bullish trends.
**Investor Sentiment:**
Investors appear cautious, as indicated by XRP’s struggle to break and hold above important technical levels. The fear of a potential 30% crash remains if the bulls fail to secure momentum to reclaim and sustain above the 50-day SMA.
H2: Closing Thoughts
XRP’s current market position is a crucial juncture that could determine its short-term trajectory. Successfully breaking above and holding the 50-day SMA might not only prevent significant declines but could also potentially trigger a bullish market response. Investors and traders should closely monitor these developments, as they could indicate the broader sentiment and future movements in the crypto market.
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