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With a brief move above the 26-day Exponential Moving Average, XRP has shown signs of life, raising expectations for a more significant macrotrend reversal. The daily chart's developing structure does not yet shout full recovery, so traders might want to hold off on celebrating. The asset has recovered and is currently trading around $3.00 following a severe multi-day sell-off that pulled XRP down from its local peak of $3.70 to just above $2.80.
This is not enough
Bulls received some technical respite after the recent close above the 26 EMA. Nonetheless it is critical to consider candle structure and price context in addition to moving averages. The spinning top pattern, which is frequently linked to market hesitancy, is reminiscent of the current daily candlestick. This formation appears immediately following a corrective bounce rather than an upward trend. That is the key.

After rallies, spinning tops frequently indicate a pause or even a reversal. At this psychological resistance level, which is close to $3, it implies that sellers might intervene once more. Furthermore, volume does not always indicate strength. Buy-side volume has been steadily declining during this recent price recovery although it has increased since the bottom.
XRP's recovery chances
The lack of conviction may be a precursor to a new leg upward, which would indicate that the bounce is more of a relief rally. The 50 EMA at about $2.71 and the 100 EMA at $2.60 are the next significant support zones. The likelihood of a retest of these averages increases if XRP is unable to hold onto its current levels and drops back below the 26 EMA.
With the RSI hovering just above 51, there is ample opportunity for either upward or downward momentum. The likelihood of a reversal being sustained, however, is still in doubt unless there is a clear break above $3.10-$3.20 supported by volume. Technical prudence is still necessary because XRP is not quite out of the woods.