After hitting a recent low of $2.03, XRP has bounced back to $2.10, registering a modest gain of over 1%. However, this slight rebound does little to mask the cryptocurrency’s broader struggles. Over the past week, XRP has closed in the red on six out of seven daily trading sessions, reflecting a broader downtrend in the crypto market. Investor sentiment remains cautious as falling prices and market uncertainty continue to pressure digital assets.
Mixed Signals in XRP’s Technical Outlook
XRP’s price action remains caught in a battle between bearish and bullish indicators across different timeframes. On the 3-day chart, a bearish divergence is still active, suggesting that despite price fluctuations, momentum remains weak. This ongoing bearish pressure indicates that the recent bounce may not yet signal a definitive trend reversal.
However, a contrasting picture emerges on the 8-hour chart, where a bullish divergence is forming. While XRP’s price has been recording lower lows, the Relative Strength Index (RSI) is showing higher lows. This pattern often signals strengthening momentum, hinting at a potential recovery. If RSI continues its upward trajectory in the coming sessions, it could confirm a short-term reversal.
Short-Term Price Action: Sideways with Bullish Bias
Given these mixed signals, XRP’s short-term outlook remains uncertain but leans slightly bullish. Historically, such technical setups either lead to a gradual climb followed by consolidation or, under more favorable conditions, stronger price rallies. However, the extent of any upward movement largely depends on Bitcoin’s price action and broader market sentiment.
Key Support and Resistance Levels
Currently, XRP’s critical support zone lies between $1.95 and $2.05. If the price dips within this range, buying interest is expected to provide stability. On the resistance side, the $2.24 to $2.30 zone remains a key hurdle, where selling pressure is likely to intensify.
Also Read: XRP Price Teeters at $2: Will It Rebound or Plunge to $1.5?
While XRP’s current momentum hints at a potential rebound, significant upside movement remains uncertain unless Bitcoin breaks out decisively. For now, cautious optimism prevails among traders, with XRP positioned at a crucial juncture in its price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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