XRP: Multi-Year Support Trendline Signals Next Move

What to Know:

• XRP has corrected, presenting a potential buying opportunity near a multi-year support trendline.
• Broader crypto markets face macro uncertainties, impacting XRP’s short-term trajectory.
• Institutional investors should monitor this key support level for strategic entries, balancing risk and reward.

XRP’s recent dip mirrors broader crypto market corrections, inviting scrutiny from institutional and high net worth investors. While the asset has shown resilience, a multi-year support trendline has emerged as a critical level to watch. This technical setup provides a potential entry point, contingent on navigating prevailing market uncertainties and XRP’s historical price action.

Potential Rebound to Resistance

Market analyst CoinsKid highlights a possible rebound scenario for XRP from its recent lows. This rebound could target the “5-day ribbon,” aligning with a red sell dot around $2.5. This level coincides with resistance from a descending trendline, suggesting a potential roadblock. For institutional players, this presents a short-term trading opportunity, albeit one requiring careful execution given the confluence of resistance levels.

Multi-Year Support Trendline

CoinsKid identifies a multi-year ascending support trendline that has historically cushioned XRP from significant declines since 2020. This trendline, currently around $1.4, represents a key area of interest. A drop to this level would mark a substantial correction, potentially offering a strategic entry point for long-term investors. Such opportunities require a disciplined approach, aligning with broader portfolio strategies and risk management protocols.

Historical Context and Future Outlook

The last instance XRP tested this support trendline was in November 2024, preceding a 580% surge. This historical precedent offers a bullish perspective, yet prudent investors must acknowledge that past performance is not indicative of future results. Regulatory developments, macroeconomic factors, and Ripple’s ongoing legal battles remain crucial variables influencing XRP’s trajectory.

CoinsKid Ribbon as a Pivot

The “CoinsKid Ribbon” serves as an important pivot level for XRP. The asset’s inability to sustain above this ribbon since October 2025 indicates bearish momentum. A further decline could signal a third wave within a larger corrective pattern, potentially driving XRP towards the multi-year ascending trendline. Monitoring this ribbon in conjunction with other technical indicators can refine entry and exit strategies.

Navigating Uncertainty

XRP’s price action is subject to broader market sentiment and regulatory developments. While the multi-year support trendline offers a potential floor, a break below could trigger further downside. Institutional investors should weigh these risks against the potential rewards, implementing robust risk management frameworks and diversification strategies. Staying informed on regulatory postures and Ripple’s legal progress is paramount for making sound investment decisions.

Related: XRP Price Slips Despite ETF Demand

Source: Original article