XRP experienced a notable 20% pullback after a strong rally, signaling a shift in momentum and raising questions about its immediate price direction. With the cryptocurrency now hovering between key support and resistance levels, traders are closely watching for signals indicating whether a recovery or further decline is coming.

Daily Chart Outlook: Key Levels to Watch

The daily price chart shows that XRP was recently rejected after testing the significant $3.5 resistance area. This level has historically served as a price ceiling, and the resulting rejection pushed the token lower into a consolidation range. Currently, XRP is hovering around the $2.8–$2.9 zone — a strategic support level reinforced by both the midline of an ascending channel and the 100-day moving average (MA), making it a critical area for buyers to defend.

If this support holds, there’s a good chance XRP could recover to the $3.2 range and potentially retest the $3.5 resistance again. However, if selling pressure dominates and the price breaks below $2.8, XRP might fall toward the next demand region at $2.2–$2.4. This zone not only served as a previous consolidation base but also aligns with the lower trendline of an ascending wedge, increasing its technical importance.

Daily price action highlights XRP’s struggle to maintain gains above the $3.5 resistance.

4-Hour Chart: Descending Triangle Signals Bearish Pressure

Zooming in on the 4-hour chart reveals a descending triangle forming, characterized by lower highs compressing against a relatively flat base around $2.8–$2.9. This bearish formation reflects mounting sell-side pressure, with bulls yet to establish control.

If XRP drops below this triangle’s base, it could initiate a deeper decline, potentially targeting lower liquidity levels around $2.7 and eventually closer to $2.2. These downside targets align with previously tested support zones, making them critical to monitor.

On the other hand, if buyers can hold the $2.8 level and successfully push the price above the descending trendline near $3.2, it would invalidate this bearish setup. A breakout like this could reintroduce bullish momentum into the market and set the stage for another approach toward the $3.5 resistance area.

4-hour chart reveals mounting bearish pressure as XRP consolidates within a descending triangle.

Traders and investors should remain cautious amid these conflicting signals, as XRP’s next major move hinges on how price reacts at the $2.8 pivot zone and whether bulls regain momentum to overcome bearish forces.

Related: XRP Price: $12M Max Pain for Bears

For full analysis and original charts, visit the Ripple Price Analysis article on CryptoPotato.