Recent price movements for XRP are showing early indications of a possible trend reversal, but not the bullish one that investors had hoped for. The momentum has halted perilously near invalidation after momentarily forming what appeared to be the start of a mini-golden cross, in which the 50 EMA crosses above the 100 EMA.
Now that XRP is trading at $2.24, down more than 1% from the previous session, the rally is waning. Although XRP is still above its 200 EMA at $2.09, the fact that it has not been able to hold above the 50 and 100 EMAs ($2.25) indicates that the bullish crossover may not fully occur. Without obvious bullish volume, the price may continue to vacillate between these levels, causing the EMAs to flatten or even reverse, preventing the golden cross from ever being confirmed.
This could lead to a wider correction rather than just a technical error. Three levels should be closely monitored by XRP investors, including the area where the 100 and 50 EMAs are meeting. Bullish control is weakened by a daily close below this. The 200 EMA offers structural assistance; there would be strong selling pressure if there were to be a break below it. The amount of $2 serves as a psychological level.
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That bulls are out of steam is confirmed if this gives way. The network activity of XRP, particularly payments between accounts, is declining, according to on-chain data, which heightens the worry. A few days after reaching a peak of over one million transactions, the count fell sharply to 332,639 transactions on June 12.
