XRP is facing renewed selling pressure as investors weigh the potential impact of a Democratic-controlled US Congress on cryptocurrency regulation. The token has struggled to sustain any recovery, with sellers maintaining control across key technical levels.
Regulatory concerns weigh on sentiment
Concerns over stricter oversight have added to broader market uncertainty, dampening investor confidence and limiting upside attempts across major digital assets. XRP, along with Bitcoin and Ethereum, has failed to hold recent rebounds, with repeated rejections at resistance levels reinforcing bearish momentum.
Technical breakdown below moving averages
XRP's technical outlook has deteriorated after closing below its 200-day Exponential Moving Average (EMA), a widely watched indicator of long-term trend direction. The token now trades below its 50-day, 100-day, and 200-day EMAs, clustered between $1.320 and $1.375, signaling a persistent downside bias.
The cryptocurrency has also failed to break above the upper boundary of a descending channel, currently near $1.257. This resistance has repeatedly capped recovery attempts, suggesting that sellers remain active during any bounce.
Momentum indicators point to continued weakness
The Relative Strength Index (RSI) sits near 35, below the neutral 50 level, indicating that bearish momentum dominates. Meanwhile, the Moving Average Convergence Divergence (MACD) has dropped below its zero line, reflecting strong selling pressure and little evidence of a sustained bullish reversal.
Key levels to watch
On the upside, XRP faces immediate resistance at $1.257, the descending channel's upper trendline. A decisive breakout above this level could open the door to a retest of the psychological $1.300 mark. However, stronger resistance lies around the 100-day EMA at $1.320 and the 50-day EMA at $1.326. A sustained move above these closely positioned indicators would be an early sign that bearish pressure is easing.
Beyond that zone, the 200-day EMA at $1.375 represents another significant hurdle. A broader recovery could bring the $1.540 and $1.900 resistance levels into focus, though reaching those targets would require a substantial improvement in market momentum.
On the downside, immediate support sits at $1.160. A daily close below this level could accelerate selling pressure and expose the psychological $1.000 support, a critical downside target if the current bearish structure persists.
Broader market context
The weakness across major cryptocurrencies suggests the broader market remains vulnerable to additional corrections, particularly if regulatory concerns and selling pressure in US technology stocks persist. For now, Bitcoin, Ethereum, and XRP must reclaim their respective resistance zones to signal a meaningful recovery, while continued trading below these levels could expose further downside targets.
XRP's inability to reclaim the descending channel resistance and its major moving averages suggests that sellers retain the upper hand. Unless the token establishes a sustained recovery above $1.320–$1.375, short-term rebounds are likely to remain corrective moves within the prevailing downtrend.
This article is for informational purposes only and does not constitute financial advice.
