XRP, the fourth-largest cryptocurrency by market cap, has seen its price flatline around the daily SMA 50 at $2.18 in recent days, leaving traders wondering when real momentum might return.
The daily SMA 50 has been significant for the XRP price since it has served as critical support and resistance during this cycle.
XRP lost the daily SMA 50 when it fell below it in February. Despite several attempts to break higher, XRP has been unable to generate enough buying pressure to decisively move past this key technical level.
Attempts to return above this level faltered in February and twice in March. Despite brief rallies above the daily SMA 50, XRP has struggled to sustain significant momentum, with price action largely moving sideways.
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Right now, the daily SMA 50 at $2.18 is serving as a snag for XRP price, preventing it from gaining ground. After several days of consolidation since mid-April, XRP made a move alongside the rest of the crypto markets, rising above the daily SMA 50. In a sharp move, XRP recovered to highs of $2.3 on April 23. As expected, bulls faced resistance at this level. Since then, the XRP price has stagnated near the daily SMA 50.
XRP attempting to rekindle momentum
Bulls are currently attempting to revive the momentum, with XRP moving higher on optimistic ETF news.
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According to recent reports, the SEC has approved a public launch date of April 30 for ProShares Trust’s XRP ETF. Over the weekend, asset manager Hashdex announced the launch of an XRP ETF, marking another milestone for the cryptocurrency on the Brazilian stock exchange.
At the time of writing, XRP was up 1.61% in the last 24 hours to $2.21, having reached intraday highs of $2.26.
For XRP to sustain its current momentum, it would require a convincing breach over the daily SMA 50, supported by high volume. Such a move could open the door to higher targets, including the $3 level, and restore bullish momentum.
However, if XRP continues to stall and returns below the daily SMA 50, it may slip back into a consolidation phase or decline to lower levels, such as $2, if sellers regain control.
