What to Know:
- XRP has rebounded from the $1.90 demand block, retesting the broken lower boundary of a multi-month flag pattern.
- The key resistance zone to watch is $2.40–$2.50; reclaiming this level is crucial for a bullish trend shift.
- Failure to break above the descending trendline on the 4-hour chart could lead to another test of the $2.00 support.
XRP, the cryptocurrency closely associated with Ripple, has shown initial signs of recovery after a sustained period of selling pressure, managing to reclaim the $2.10–$2.20 range. The current price action is critical, as the reaction to the existing resistance level will determine if this bounce is a short-term correction or the start of a more substantial upward trend. Investors are keenly watching XRP’s ability to overcome key resistance levels.
The daily chart shows XRP’s bounce from the $1.90 demand block, which has historically provided significant support. This move has brought the price back into a multi-month flag pattern, potentially indicating a bear trap, and suggesting underlying strength.
The 4-hour chart reveals a sharp, V-shaped recovery, initially fueled by short-covering around the $1.95 mark. XRP is now encountering resistance at the descending trendline and the $2.30–$2.40 supply block, where early signs of exhaustion are emerging.
A successful break and consolidation above the descending trendline could open the door to further gains, with liquidity pockets around $2.55 and $2.75. Conversely, a rejection at this level would likely lead to another test of the $2.00 region before any significant recovery attempt.
The overall market structure for XRP remains bearish on the 4-hour timeframe until there is a decisive close above the $2.40–$2.50 range. Traders and investors should monitor these levels closely to gauge the potential for a sustained bullish reversal.
Source: Original article
