XRP Targets Rebound: Is $1 Back in Play?

What to Know:

• XRP has rebounded from a local low but faces resistance within a broader downtrend.
• The recovery occurs amid ongoing market volatility and uncertainty in the crypto space.
• XRP’s ability to overcome resistance levels is crucial for sustained upward momentum and liquidity.

XRP has experienced a notable recovery after briefly dipping to around $1.10, yet its overall market structure remains tenuous. This recent upward movement has propelled the price into a significant supply zone, presenting a pivotal juncture that will determine whether the asset continues its ascent or faces another rejection within the prevailing downtrend. Investors are closely watching how XRP navigates this critical phase.

Daily Chart Analysis: Descending Channel

On the daily chart, XRP is still trading within a descending channel, maintaining its bearish structure despite the recent positive correction. The sell-off had intensified, driving the price toward the major demand zone between $1.10 and $1.20, where buyers intervened. This reaction underscores the importance of the $1.15 level as a robust demand area on the higher timeframes.

Key Resistance at $1.80

The current rebound is approaching the middle trendline of the channel, a former breakdown point near $1.75 to $1.85. This area previously served as support but has now transitioned into resistance. As long as XRP remains below this $1.80 level, the overall bias will likely remain corrective within a bearish trend. A daily close above $1.85 could pave the way for a move toward the next major supply zone at $2.40 to $2.50. Conversely, rejection from this zone could send the price back toward $1.20.

4-Hour Chart: Impulsive Recovery

The 4-hour chart paints a picture of a more impulsive recovery, characterized by strong bullish candles that have reclaimed the short-term supply area around $1.50 to $1.55. XRP pushed into the $1.65 to $1.80 region, which corresponds with minor intraday supply and the lower boundary of a previous consolidation range. However, it faced rejection there, pulling it back to its starting point.

Potential Scenarios

If XRP can stabilize above $1.55 and establish a base between $1.55 and $1.70, a continuation toward $1.80 becomes more probable. Conversely, failure to maintain support above $1.55 could shift momentum back to the downside, potentially exposing $1.30 and then the critical $1.15 demand level again. Traders should monitor these levels closely for potential trading opportunities.

Broader Market Context

XRP’s movements are occurring against a backdrop of broader market dynamics, including the performance of Bitcoin and Ethereum, regulatory developments, and macroeconomic factors. Any significant news or events in these areas could impact XRP’s price action. The approval of Bitcoin ETFs, for example, has influenced overall market sentiment and liquidity, indirectly affecting altcoins like XRP.

Conclusion

XRP’s recent rebound presents both opportunities and risks for investors. While the asset has shown resilience in reclaiming some lost ground, it faces significant resistance levels that could trigger further downside. Monitoring key support and resistance levels, along with broader market trends, will be essential for making informed trading decisions.

Related: Crypto Turnover in Russia Exceeds $650M

Source: Original article