XRP Faces Key Reversal Risk After 30% Rally

XRP has experienced a remarkable 30% rebound from its lows just a month ago, but fresh analysis suggests this upward momentum could soon face a serious test. As Ripple’s flagship token shows signs of fatigue, traders should prepare for potential shifts in market direction.

Following last month’s dramatic drop, which was largely driven by escalating trade tensions and broader market turbulence, the crypto market has started stabilizing. Optimism has gradually returned, particularly after news emerged of possible renewed trade talks between major global economies. This easing of geopolitical worries contributed to XRP’s climb from $1.60 to above $2.10, reflecting a bounce-back in sentiment across the board.

However, even as XRP hovers above the $2 mark, a widely-followed technical indicator is now flashing red. According to crypto analyst Ali Martinez, the TD Sequential indicator has issued a sell signal on the 3-day chart. This tool is frequently used to forecast trend exhaustion, suggesting the recent gains might be at risk of giving way to a correction.

While XRP has managed to hold above the $2 threshold, its current position offers limited clarity about which direction it will head next. Martinez emphasized the importance of this psychological level, cautioning that if XRP fails to maintain $2 as support, the level could quickly flip into a resistance zone—something traders and investors need to be wary of.

Currently, XRP is trading near $2.14, positioned directly between a strong support at $2.00 and notable resistance at $2.26. According to the latest market insights, these two levels define a tight range where XRP has consolidated. The lack of a decisive breakout on either end has kept traders guessing about its next major move.

Martinez also highlighted the importance of a ‘decisive close’—meaning a daily or multi-day candle closing outside the range of $2 to $2.26. Such a development could signal the beginning of a new trend, either extending bullish momentum or triggering a necessary pullback.

While some analysts remain optimistic, even calling XRP’s price near $2 “a gift,” the chart patterns suggest caution is warranted. In choppy market phases like this, short-term gains can quickly evaporate if key support zones are breached.

Investors keeping an eye on XRP should consider the potential implications of this technical pullback. A breakout above $2.26 could reinforce the upward trend, potentially attracting new buying pressure and pushing the asset toward higher resistance areas. Conversely, a sustained drop below $2 may spark selling activity and a period of bearish pressure, at least in the near term.

In essence, XRP sits at a crossroads. Its resilience over the past few weeks is notable, particularly given the overall volatility in the market. However, the current indicators point to an inflection point where decisive action will soon reveal the likely direction of its next substantial move.

Now more than ever, market observers are closely watching price behavior within this critical $2–$2.26 corridor to anticipate ripple effects on sentiment and subsequent movements. With the right confirmation, traders may find either new opportunity or renewed risk exposure depending on how XRP’s price action unfolds in the days ahead.

Related: Expert Advice: Sell XRP If You’re Confused

Sources: developments, took place, reports, believe