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The fact that XRP has been able to recover around the $2.10 support level has given some new hope for a possible recovery. This move indicates that bearish momentum may be waning, despite the market's recent difficulties within a descending channel. But before XRP confirms any real reversal, there is still a long way to go.
Resistance levels are forming close to the $2.40 and $2.60 marks, and XRP is currently trading within a clearly defined downtrend. The asset would need to rise by about 40% from its current position in order to reach $3, but a proper breakout from this range could spark a rally toward that goal. Considering the overall state of the market and the ongoing selling pressure, this is no small accomplishment.
The decreasing volume during this downtrend is among the more encouraging indicators for XRP bulls. As fewer sellers are willing to drive the price lower, a decline in volume along with declining prices usually indicates that bears are losing control. A stronger rebound may be possible if this trend persists and selling pressure on XRP wears off. Even after the recovery, XRP is still trapped in the downward channel that has dominated its price movement for weeks.
Arman ShirinyanIt needs to establish steady bullish momentum and break above its upper resistance, which is located around $2.60, in order to completely break out of this trend. Without this, attempts at rallies run the risk of being short-lived and causing further declines. Going forward, the mood and liquidity of the market as a whole will probably influence XRP's price movement.
XRP may profit from a general risk-on atmosphere if Bitcoin and other significant cryptocurrencies recover, increasing the likelihood that it will regain higher levels. However, if the $2.10 support is not maintained, there may be another sell-off, which would move XRP closer to its next crucial support level of $1.85. For the time being, traders ought to monitor significant resistance levels and see if volume patterns support or contradict this possible change in momentum.
Dan Burgin
Vladislav Sopov