XRP's Bearish Breakout Looms as Token Eyes December Lows

XRP Faces Bearish Breakout as Token Eyes December Lows

XRP, the native token of the Ripple network, has been trading within a narrow range since early February, oscillating between $2.76 and $2.30. This price action indicates a balance between buying and selling pressure, with the token finding support at $2.30 and resistance at $2.76.

However, recent technical indicators suggest that this balance may soon tip in favor of the bears, setting the stage for a potential price breakdown. The XRP/USD one-day chart reveals that the token's price has been oscillating within this range, with no significant breakouts in either direction.

The growing bearish bias against XRP is evident in the strengthening selloffs, as highlighted by the token's Chaikin Money Flow (CMF) metric. At press time, the CMF sits below the zero line at -0.04, indicating that capital is flowing out of the asset as buying pressure weakens.

As with XRP, when an asset's price consolidates within a range while its CMF is negative, it suggests that despite the sideways movement, selling pressure is dominant. This means traders are distributing the asset rather than accumulating it, even though the price has not yet broken down.

The setup signals a potential bearish breakout, as the lack of strong buying interest in XRP increases the likelihood of a downward move once consolidation ends. Moreover, the altcoin currently trades below its 20-day exponential moving average (EMA), confirming the rising sell-offs in the XRP market.

This key indicator measures an asset's average price over the past 20 trading days by weighting recent price movements. When the price falls under the EMA, it indicates a shift toward a downtrend as selling pressure gains momentum. This hints at a further drop in XRP's value.

A break below the support at $2.30 could trigger a further decline in XRP's value. If the bulls fail to defend this level, XRP's value could plunge to $2.13. Should selloffs strengthen at this level, the decline could extend to $1.48.

On the other hand, a strong resurgence in XRP demand could invalidate this bearish projection. In that scenario, the token could break above the