XRP Faces Challenges in Its Recovery After Significant Capitulation
XRP continues to face significant selling pressure in the aftermath of the recent market-wide crash that wiped out billions from digital assets. The coin has faced challenges in finding stability, as evidenced by the lackluster momentum in both the XRP/USDT and XRP/BTC pairs across various time frames.
Even with slight intraday recoveries, traders are exercising caution as the asset lingers close to crucial support levels that could determine its next directional shift.
Market Structure Signals Bearish Momentum Ahead
XRP has officially broken below the falling wedge pattern on the USDT pair that had been forming since August, which invalidates earlier bullish expectations. The recent shift highlighted vulnerabilities and altered the outlook towards increased downside risks in the near future.
The token experienced a brief decline to $1.25 on certain exchanges before recovering to $2.00 amid the crash. Nonetheless, the price action remains close to the lower edge of the long-term upward channel.
Technical Indicators Reinforce Downtrend Warning
The 100-day and 200-day moving averages have transitioned into resistance zones, constraining any short-term recovery efforts. The Relative Strength Index is currently positioned at approximately 36, indicating ongoing bearish momentum.
Experts warn that if the price falls below $2.00, it could lead to a new wave of selling pressure down to $1.25, possibly solidifying a medium-term bearish trend for XRP.
Recommended Article: XRP Price Faces Critical Turning Point As Investors Await Clarity
Possible Upside Reversal Remains Conditional
Reclaiming the $2.70 zone would signal the first signs of renewed strength and a possible shift in momentum. A breakout like this might motivate buyers to come back and challenge the higher resistance levels beyond $3.00.
Nonetheless, in the absence of substantial buying volume or broader relief in the cryptocurrency market, a sustained recovery seems challenging. The overall sentiment continues to be delicate following the recent fluctuations caused by tariffs.
XRP Bitcoin Pair Shows Deep Structural Damage
The XRP/BTC trading pair showcases significant technical deterioration, underscoring the severity of the recent flash crash. Prices experienced a significant decline, plummeting from 2,000 SAT to 700 SAT in just a matter of hours, before making a partial recovery.
Despite the pair’s recovery above 2,000 SAT, significant selling pressure persists, and both key moving averages are still trending downward, highlighting a bearish trend.
Momentum Indicators Still Show Limited Strength
The RSI for the XRP/BTC pair has shown a slight recovery from oversold levels, yet it continues to stay below 40, indicating a lack of strong bullish momentum. This indicates that consolidation might persist prior to the establishment of any significant reversal.
If the 2,000 SAT level does not hold, the next significant support is around 1,500 SAT, whereas a clear breakthrough above 2,500 SAT would indicate a genuine trend reversal.
Prospects for XRP in the Upcoming Weeks
Experts characterize the present scenario as crucial for XRP’s mid-term trajectory, with the $2.00 mark acting as the essential line of defense. A successful hold could lay the groundwork for a gradual recovery, whereas a failure might lead to prolonged downside continuation.
Currently, traders are paying close attention to daily closes near significant support levels. Holding above $2.00 and regaining $2.70 would boost confidence, while a drop below these levels could trigger further selling pressure.
