XRP Signals Bear Market; Analysis Reveals Downturn

What to Know:

• XRP faces bearish pressure, respecting a descending structure and entering a higher-timeframe demand zone.
• The broader context involves a market-wide sell-off, with XRP breaking below multiple structural supports.
• This scenario impacts XRP liquidity as it tests critical support levels, potentially leading to a consolidation phase.

XRP, Ripple’s native token, has been under significant bearish pressure, adhering to a well-defined descending structure. The recent sell-off has driven the price into a major higher-timeframe demand zone, although momentum and structure still favor sellers. Market participants anticipate a short-term consolidation phase as the asset tests critical support levels.

Daily Chart Analysis

On the daily timeframe, XRP has decisively broken below multiple structural supports, confirming a bearish continuation. The formation of lower lows and lower highs indicates a notable sell-off. The price has now reached a significant support level around $1.5, representing the last substantial buyers’ base before a potential deeper decline.

Previous daily demand zones have now turned into strong supply zones, limiting upside attempts. As long as the price remains below the $2.00–$2.20 reclaimed supply region, any bounce should be viewed as corrective. This suggests that XRP is in a distribution markdown phase, with buyers reacting defensively rather than aggressively accumulating.

4-Hour Chart Analysis

The 4-hour timeframe analysis reveals a clear continuation of the downtrend within a descending channel. After failing to hold the $1.85–$1.90 support band, XRP accelerated downwards, breaking structure and increasing downside momentum. The most recent push lower has also invalidated any short-term higher-low attempts.

The broken $1.85–$1.90 zone is now acting as a near-term supply area. Any relief bounce into this zone would likely present a pullback opportunity rather than a reversal signal. The descending trendline continues to guide the price lower, maintaining the bearish structure. Failure to hold the current demand zone increases the probability of a deeper move towards the lower high-timeframe demand region around $1.30–$1.40.

Market Structure and Liquidity

The current market structure indicates that XRP’s liquidity is being tested at critical support levels. The breach of previous support zones suggests a potential increase in selling pressure, which could lead to further declines. However, the presence of a significant demand zone at $1.5 may provide some temporary support, leading to a consolidation phase.

Potential Consolidation Phase

Given the current technical outlook, XRP is likely to enter a consolidation phase in the short term. This consolidation would occur within the confines of the descending channel, with the price fluctuating between the $1.5 support and the $1.85–$1.90 resistance. Traders should monitor these levels closely for potential breakout or breakdown scenarios.

Broader Market Implications

The performance of XRP is also influenced by broader market trends, including the performance of Bitcoin and Ethereum. Any significant movements in these major cryptocurrencies can impact XRP’s price action. Additionally, regulatory developments and institutional interest in crypto assets, including potential XRP ETFs, could play a role in shaping its future trajectory.

Conclusion

XRP is currently facing significant bearish pressure, trading within a defined descending channel. While the price has entered a major demand zone, the overall market structure favors sellers. A period of consolidation is likely in the short term, with traders closely watching key support and resistance levels for potential directional shifts. The broader market context and regulatory developments will also influence XRP’s performance.

Related: Crypto ETF Flows Turn Negative: $1.7B Out

Source: Original article