Analysts Warn XRP Recovery Faces Mounting Obstacles
XRP is still trading well below the levels it was supposed to reach. Analysts say that the overall structure is still very bearish. Price action shows that daily charts are making lower highs and lower lows that stay the same.
The asset has been trading close to $1.45 in recent sessions. It seems less and less likely that the price will reach $2 soon. Market reactions show little excitement during attempts to bounce back in the short term.
Forecast Cuts Undermine Confidence In Long Term Upside
Standard Chartered cut its price target for the end of 26 by a lot. After February’s drops, projections fell from $8 to $2.80. Analysts pointed out that sentiment got worse after long periods of steep corrections.
Ripple’s leaders got a very important advisory role on the CFTC committee. Because it was only an advisory position, the markets were cautious about the appointment. Traders thought the news wasn’t enough to change the fundamentals in the near term.
Mixed Inflows Fail To Support Sustained Price Momentum
Even though the market as a whole was weak, XRP investment products saw new money come in. At the same time, Bitcoin and Ethereum lost money. These contradictions show that there is uncertainty among the altcoin’s investors.
Temporary price spikes went away quickly after the first reactions. Traders used rallies as chances to get out of positions over and over again. Conditions show that there isn’t a lot of faith in bullish scenarios this month.
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Heatmap Data Reveals Heavy Supply Near Former Range Highs
Cost basis analysis shows that a lot of supply is building up between $2.35 and $2.76. Repeated consolidation made it hard to break through that range from above. Heavy supply clusters make it harder to try to recover.
It looks like more accumulation is happening below current prices. There are fewer clusters between $1.60 and $1.93. If the price keeps going in this direction, there may be new demand.
Sentiment Metrics Show That Market Conviction Is Fading
During earlier times of strong prices, weighted sentiment went up a lot. Optimism rose along with rallies in late December and early January. After the selloff in February, these trends changed quickly.
Recent sentiment readings are still low, close to neutral. Levels don’t come close to the excitement seen at past tops. Right now, it looks like there will be a relief rally instead of a confirmed trend reversal.
Technical Indicators Confirm Ongoing Daily Downtrend
Price turned down again and again after reaching a high of about $3.11. Continued drops broke through several Fibonacci retracement supports in a big way. During the selloff, key levels at $2.09 and $1.72 broke down.
The 20-day and 50-day exponential moving averages are both sloping down right now. In recent sessions, trading has stayed below these indicators. These setups make the bearish trend structure even stronger.
Key Resistance Levels Determine Future Market Direction
XRP needs to get back to $1.53 to make structural improvements. Getting back to the 20-day EMA shows that strength is coming back. A break above $1.72 is still important for momentum.
If the support level around $1.12 doesn’t hold, the price could go down even more. If the macro range low is lost, it would confirm patterns of broader continuation. Analysts say that the chances of recovery are still low without strong signs of a reversal.
