XRP Signals Breakdown After Rejection

What to Know:

• XRP faces resistance at the $1.8 level after a failed breakout, consolidating between $1.2 and $1.8.
• Broader market structure remains bearish, with XRP trading below a key descending channel midline.
• A breakout from this range is crucial for determining XRP’s next directional move and could impact liquidity flows.

XRP is currently navigating a critical juncture, marked by a consolidation phase between $1.2 and $1.8. Recent price action indicates a struggle to overcome the $1.8 resistance, a level that has proven to be a significant barrier. This consolidation occurs within a broader bearish context, characterized by XRP trading below the midline of a long-term descending channel.

Daily Chart Overview

On the daily chart, XRP’s price action shows a rebound from the major demand zone around $1.2. This area has historically acted as a structural floor, preventing further declines. Despite this bullish reaction, XRP remains below the channel’s midline and a descending resistance structure. The $1.8 region is a critical resistance level, previously a support, now turned resistance. As long as XRP stays below this zone, the overall market structure remains corrective.

Key Resistance and Support Levels

The $1.8 level is pivotal; a decisive daily close above this mark could shift momentum, potentially opening the path toward the $2.1–$2.2 supply area. Conversely, failure to maintain levels above the recent higher low increases the likelihood of a return to the $1.2 demand zone. These levels are crucial for traders monitoring potential entry and exit points.

4-Hour Chart Analysis

A closer look at the 4-hour chart reveals a structured rebound from the $1.2 level, forming a short-term base followed by a bullish attempt to breach the $1.8 supply zone. However, this move resulted in a false breakout, with the price quickly rejecting and falling back below the resistance. This rejection reinforces the significance of the $1.8 region as a mid-term supply barrier.

Consolidation Pattern

Currently, XRP is consolidating between $1.2 and $1.8, forming a local consolidation pattern after the failed breakout. The $1.5 mark is acting as an internal supply zone within this range. This consolidation phase suggests a period of indecision in the market, with both buyers and sellers vying for control.

Potential Scenarios

If buyers can reclaim and sustain momentum above $1.5, the next target would be the $1.8 daily resistance. Conversely, continued rejection from this zone could drive the price back toward the $1.35 support and potentially retest the major $1.2 demand area. Traders should monitor these levels closely for potential breakout or breakdown scenarios.

Conclusion

XRP’s price action is currently confined within a well-defined range, with the $1.8 level acting as a critical resistance. A confirmed breakout from this range will likely determine the next impulsive move. Until then, traders should remain cautious and monitor key support and resistance levels for potential trading opportunities.

Related: XRP Signals Weakness; Bitcoin Strategy Revealed

Source: Original article