What to Know:
- XRP is trading within a descending channel, suggesting a potential bullish reversal if volume increases.
- Key resistance lies at $2.6, with a break above potentially leading to a rally towards $2.8–$3.1.
- Failure to breach resistance could result in a retest of the $2.3–$2.2 support zone.
XRP’s price movements continue to be closely watched by investors and traders, as it navigates a sustained downward structure. Recovery attempts have consistently met supply, highlighting the ongoing bearish pressure. The critical demand zone at $2.05–$2.15 remains the key level determining whether the current correction turns into a more significant sell-off.
On the daily chart, XRP is trading within a descending channel formation, which often precedes bullish reversals when accompanied by increased volume. After rebounding from the $2.1–$2.2 demand zone, the price has moved towards $2.5, aligning with a crucial supply zone and close to the 200-day moving average. A successful break above $2.6 could signal a shift in market structure favoring buyers, potentially opening the door to the $2.8–$3.1 range.
The 4-hour chart reveals XRP’s continued movement within a descending channel, characterized by lower highs and lower lows. The recent rejection at the $2.45–$2.55 zone aligns with the channel’s midline, confirming its role as a seller’s base. The price has since retreated towards the $2.20–$2.25 region, and the compression pattern suggests a potential for a significant move, contingent on breaking above the descending trendline or falling below the $2.15 support.
The current market dynamics suggest that a break below the $2.15 support could trigger a deeper slide towards the $1.75 level. Conversely, a sweep to the $2.05 level followed by a sharp reversal could indicate a final liquidity grab before a corrective bounce. Monitoring these levels is crucial for gauging potential shifts in momentum and identifying possible entry or exit points.
As XRP navigates these technical patterns, traders and investors should remain vigilant, considering the broader market context and potential regulatory developments. The ability of XRP to overcome resistance levels and establish sustained upward momentum will be key to unlocking further gains.
Source: Original article
