XRP is once again in the spotlight as its price action shows signs of weakening over multiple time frames. After a short period of relative stability, the recent breakdown of daily and intraday charts suggests a change in market momentum that traders cannot ignore. As bearish pressures increased and key support levels began to crumble, the next move in XRP became a major topic. Will they find scaffolding soon or a deeper correction on the horizon?
XRP key bullish emanation
In the X Update, renowned cryptography analyst Gowanus Monster highlighted the key technology developments of XRP. His analysis shows that the token completed the formation of a bearish descending triangle over multiple time frames. Based on measured movements from this structure, the projected target is around $1.90, suggesting a potentially large retracement as bearish momentum continues to increase.
Zooming out to the weekly chart, the pattern begins to evolve into a well-defined structure with a clear upper and lower boundary. Gowanus Monster noted that the current focus is on identifying higher and lower levels within this channel.
He also pointed out important principles. When price rebounds from the upper boundary of the downward channel fail to reach the lower boundary and instead bottom out early, they often precede a bullish breakout. This subtle behavior, if seen, could set XRP stages to ignite fresh gatherings beyond the channel, defiing current bearish structures.
Bear Trap Scenario: When Sold Out Meets Demand
According to Crypto analyst GEMXBT, XRP has firmly established itself in the short-term downtrend, with price action currently below the 5, 10 and 20th moving averages. This consistency of moving averages is a classic indication of sustained bearish momentum, suggesting that sellers will continue to dominate the market in the near future.
Currently, the relative strength index (RSI) is immersed in the zone sold, suggesting an imminent reversal or integration period as the market seeks equilibrium. Meanwhile, the MACD line remains below the signal line, indicating that the negative side pressure will persist, indicating that potential recovery may face headwinds.
From a price structure perspective, GEMXBT has identified key support around $2.15. This could serve as an important level for buyers to intervene and defend. Conversely, resistance is near $2.25. This is the zone the Bulls need to retrieve to change their short-term emotions. The recent increase in trading volume is noteworthy. This is noteworthy as it could result in more volatility in the previous session if support fails or if it promotes a sudden recovery if sentiment reverses.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.