XRP Targets Key Level: Is a Buy Signal Near?

What to Know:

• XRP is under bearish pressure, trading within a descending channel with limited recovery attempts.
• The broader market structure suggests a corrective phase, with XRP capped below key moving averages and resistance levels.
• Sustained weakness in XRP could impact liquidity and investor confidence in related digital assets.

XRP continues to face headwinds, struggling to break free from a well-defined downtrend. Recent price action indicates persistent selling pressure, with the digital asset failing to sustain any significant upward momentum. The current market structure suggests that XRP remains in a corrective phase, as it navigates resistance levels and moving averages.

Daily Chart Analysis

On the daily timeframe, XRP is trading within a descending channel, a pattern that has been in place since a notable breakdown earlier in the trend. XRP is currently positioned just above a key demand zone around the $1.80 level, which has historically served as a support base during pullbacks. Despite this support, the overall market structure appears fragile, with XRP unable to overcome the descending trendline and both the 100-day and 200-day moving averages.

The inability to reclaim the former support-turned-resistance zone, around $2.40 to $2.50, reinforces the bearish sentiment on the higher timeframe. Until XRP can decisively breach the descending structure and reclaim these dynamic resistance levels, any upward movements are likely to be short-lived corrections rather than the start of a new trend. As long as the price remains below the channel midline, the daily outlook suggests continued consolidation or a gradual decline toward lower demand zones.

4-Hour Chart Insights

The 4-hour chart offers a more detailed view of recent market activity, revealing XRP consolidating tightly after being rejected from the descending channel resistance. Currently, the price is compressing near the lower boundary of the channel, with sellers responding aggressively to minor rallies. This behavior indicates that while bearish momentum may be slowing, it has not yet been invalidated.

The current price action suggests that buyers are defending the $1.80 region, but the absence of strong bullish momentum underscores weak demand. Without a clear break above the short-term descending trendline, XRP remains susceptible to further downside pressure toward lower demand levels.

Broader Market Implications

XRP’s struggle to gain upward traction occurs within a broader context of market uncertainty and regulatory scrutiny. While Bitcoin and Ethereum have shown resilience, XRP’s ongoing legal challenges continue to weigh on investor sentiment. This situation impacts liquidity and market confidence, potentially affecting trading volumes and investment decisions across the crypto space.

Potential Catalysts for Change

Despite the bearish outlook, several factors could potentially reverse XRP’s current trajectory. A favorable resolution to the ongoing legal battle with the SEC could significantly boost investor confidence. Additionally, increased adoption of XRP in cross-border payment solutions could drive demand and liquidity. However, until these catalysts materialize, XRP is likely to remain under pressure.

Conclusion

XRP is currently navigating a challenging market environment, with sustained bearish pressure and limited recovery attempts. The digital asset remains confined within a descending channel, facing resistance at key moving averages and trendlines. While potential catalysts could shift the market’s sentiment, XRP is likely to remain in a corrective phase until it can decisively break above these resistance levels and demonstrate sustained upward momentum.

Related: Uphold Predicts $9–$13 XRP Price in 2025 Bull Market | Massive XRP Signal

Source: Original article