XRP (CRYPTO: XRP) fell below key moving averages on Wednesday, signaling fading bullish momentum as multiple indicators flashed a strong sell warning.
Bears Regain Control Below Key EMAs
XRP Price Action (Source: TradingView)
XRP trades near $2.53, down from last week's $2.55 rejection at the descending resistance line.
The token now sits below its 20- and 50-day EMAs at $2.41 and $2.54, with the 100-EMA near $2.64 acting as dynamic resistance.
The structure continues to form a large descending triangle that has defined price action since September.
Repeated failures to break higher confirm that sellers remain dominant as momentum fades.
RSI sits near 45, showing weak demand and limited upside interest.
A close below $2.30 could open deeper retracement levels at $2.00.
Breaking the lower trendline near $2.20 may expose the July support base around $1.63.
Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) are down on the day, though XRP still lags behind, showing weaker strength among large-cap crypto assets.
Short-Term Charts Confirm Downside Bias
XRP Short-Term Price Dynamics (Source: TradingView)
On the hourly chart, XRP's failed recovery toward $2.45 coincided with a Supertrend flip to red.
Parabolic SAR dots also moved above price, confirming near-term selling pressure.
The ascending intraday trendline from Nov. 5 remains the last defense near $2.30.
If that trendline breaks, bears could accelerate toward $2.20 in the coming sessions.
Price compression between lower highs and a rising base suggests a breakout is imminent, but technical indicators favor the downside.
On-Chain Data Shows Persistent Outflows
XRP Netflows (Source: Coinglass)
CoinGlass data shows mild net inflows of $31 million on Nov. 12.
However, outflows still dominate recent activity, reflecting steady selling from spot holders after each short-lived rebound.
The divergence between fading inflows and price stability signals weakening trader confidence.
Large holders appear to be distributing positions instead of accumulating above $2.50.
Outlook
XRP must reclaim the $2.45 to $2.55 range and close above the 50-EMA to shift momentum back to buyers.
Until then, the path of least resistance remains lower, with support targets at $2.00 and $1.63.
Momentum indicators, EMAs, and the Supertrend all continue to favor taking profits on recent rallies.
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Image: Shutterstock
