XRP Signals Key Breakout to Reverse Trend

What to Know:

• XRP continues its downtrend within a descending channel, facing resistance at key levels.
• Broader market sentiment remains cautious amid ongoing corrections and uncertainty.
• Failure to break resistance could lead to further declines, impacting XRP’s liquidity and market position.

XRP has been under persistent bearish pressure, trading within a corrective structure. Despite attempts at recovery, sellers have maintained control, preventing any significant trend reversal. The token’s price action is confined below major resistance zones, indicating a continued struggle for bullish momentum.

Daily Chart Analysis

On the daily timeframe, XRP is trading within a descending channel that has shaped its price action since the October peak. The upper boundary of this channel has consistently rejected recovery attempts, reinforcing the bearish structure. XRP is currently hovering around the $2.03 level, below both the 100-day and 200-day moving averages. The 200-day moving average, near $2.50, acts as dynamic resistance, coinciding with a major daily supply zone that has previously triggered sell-offs.

Key Resistance and Support Levels

The $2.25 to $2.50 zone remains a critical resistance area. This region, a former consolidation range, overlaps with the descending trendline, creating a strong confluence that sellers are likely to defend. Conversely, the $1.90 to $1.75 demand zone stands out as the most important support area. This region marks the strongest bullish reaction during the correction and sits near the lower boundary of the descending channel. A pullback into this zone would align with the ongoing corrective phase.

4-Hour Chart Insights

The 4-hour chart reveals persistent compression within a smaller descending structure nested inside the larger daily channel. The price is forming lower highs and higher lows, resulting in a tightening range that suggests indecision. Recent attempts to push higher have been rejected around the $2.10 to $2.15 supply zone, which aligns with a minor 4-hour order block and the local descending trendline. Rejections from this area have led to renewed selling pressure, pushing the price back toward the $2.00 level.

Potential Scenarios

If XRP fails to hold above $2.00, liquidity is likely to be drawn toward the $1.90 to $1.85 region, where the next cluster of demand is positioned. This area also aligns with the lower boundary of the short-term structure, increasing its technical significance. For any bullish shift to materialize, XRP must reclaim the $2.15 level and sustain above it with strong momentum. Until that occurs, short-term rallies are likely to remain corrective and vulnerable to rejection.

Broader Market Context

XRP’s performance is reflective of broader market trends, where Bitcoin and Ethereum also face volatility amid regulatory concerns and macroeconomic factors. The potential approval of spot Bitcoin ETFs continues to loom large, promising to inject liquidity into the market but also bringing increased scrutiny. XRP’s ability to navigate these market conditions will be crucial for its short-term and long-term outlook.

In summary, XRP remains in a corrective phase, with key resistance levels capping its upside potential. A sustained break above $2.15 is needed to signal a potential bullish reversal, while failure to hold above $2.00 could lead to further declines. Investors should monitor these levels closely, considering the broader market context and potential impacts on XRP’s liquidity.

Related: XRP Price: Sistine Research Predicts 2 Digits

Source: Original article