XRP, thought it was a rebound, but it's a 'trap' again... if $1.3 breaks, 'sell-off market'

▲ XRP decline/ChatGPT generated image

After XRP failed to break through its downtrend resistance line, it has fallen back to the key support level of $1.30, showing a stronger risk of further decline rather than a rebound.

According to U.Today, a cryptocurrency specialized media outlet, on May 26 (local time), XRP is approaching a critical support test after failing to maintain its upward momentum above the downtrend resistance line. Although XRP is still moving within a compressed range, analysis suggests that the chart structure is leaning more towards a bearish continuation pattern than a recovery breakout.

The biggest concern is the repeated resistance encountered near the 50-day moving average of $1.47. Highs are consistently getting lower below the downtrend line, and attempts to rebound towards that zone quickly lost momentum. Simultaneously, the price is moving towards the horizontal support level near $1.30, increasing market tension.

If XRP clearly loses the $1.30 support level, a decline breaking out of the multi-month consolidation range could begin. Trading volume has also steadily decreased during the consolidation, a trend often interpreted as a precursor to greater volatility.

Indicators showing upward and downward strength also fail to provide clear reversal signals. The Relative Strength Index is trapped below the neutral zone, not showing strong buying pressure or significant accumulation. However, XRP is not completely broken. The $1.30 support level is a key technical area on the chart that has been defended multiple times in March, April, and May.

If buying pressure defends $1.30 again and recovers the resistance between $1.45 and $1.50, XRP could remain in the consolidation range rather than entering a new downtrend. However, until the opposite trend is confirmed, the current structure remains biased towards bearishness.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*