XRP Faces Critical Test as Momentum Weakens After Breakout

XRP's recent rally is showing signs of exhaustion as it nears a potential reversal zone. After a strong breakout above a descending trendline on the 4-hour chart, both price and volume have started to decline, forming a rounded top pattern. The weakening momentum raises concerns of a short-term pullback, especially as XRP approaches the $2.30–$2.26 support band.

Technical indicators suggest the asset may retest the breakout trendline or even fall toward $2.10 if buyers fail to defend current levels. The rejection at the local peak, combined with a drop toward the short- and medium-term exponential moving averages (EMAs), signals waning buying interest.

Despite the short-term weakness, the daily chart still supports a bullish structure. XRP remains above the 100- and 200-day EMAs and has confirmed a breakout from a descending wedge pattern. However, the bearish divergence between price and RSI, along with fading volume, suggests growing hesitation among bulls.

If XRP closes below $2.26 with increased selling pressure, a deeper correction could follow, potentially invalidating the bullish wedge breakout. Conversely, a rebound from this level could restore momentum and support the continuation of the uptrend.

In this crucial phase, XRP traders should closely monitor price action around the $2.30–$2.26 zone, along with volume trends. The outcome could determine whether the current move is a healthy correction or the beginning of a broader reversal. Keeping an eye on RSI, EMA confluences, and structural support levels will be key for forecasting XRP’s next direction.