XRP is at a critical juncture, reclaiming the $1.80 support level. Investors are watching to see whether the price will rally again toward $2.50 or fall to $0.80.
XRP recently rebounded from $1.80 and is holding above $1.90. It briefly fell below $1.90 over the weekend but quickly rebounded and regained support. This price action suggests a potential short-term trend reversal, and leading chart analysts are focusing on whether a double bottom pattern has been formed.
Double Bottom vs. Double Top: Conflicting Analyses
Chart analyst Niels explained that XRP tested the $1.80 level twice, briefly breaking below support during the second decline before re-entering. He described this as "a typical move that often occurs in the early stages of a recovery," raising the possibility of a double bottom forming.
He particularly interpreted the Relative Strength Index (RSI), which plummeted to oversold levels of 22 before rebounding to 45, as a positive sign. "After the RSI bottomed out, prices are also stabilizing," Niels added.
If the upward momentum continues, the $1.95 level will be a short-term resistance level, and a break above this level could lead to a rise to the $2.30-$2.50 range, according to the analysis. Currently, XRP's 24-hour trading volume is approximately $224 million (approximately KRW 331.6 billion), and the price is trading at $1.92 (approximately KRW 2,844) at the time of publication.
However, not all analysis is optimistic. Analyst Daniel Ramsey disagreed, stating that "XRP is currently testing the neckline of a double top pattern." He described this pattern as a bearish signal, warning that a close below $1.77 could confirm the downtrend, with the next major support level likely being $0.80 (approximately 1,184 won).
What are the market reactions and on-chain signals?
XRP has lost momentum since surpassing $2 earlier this month. Recent rebounds have been limited, and trading volume has increased over the weekend due to increased selling pressure. Conversely, some large altcoins are showing bullish trends, highlighting XRP's relative weakness.
On-chain metrics also appear lackluster. Cryptocurrency data analyst Ali Charts reported that the number of active XRP wallets has dropped from 46,000 to 38,500 over the past week. This indicates reduced investor participation as the price moves sideways.
However, chart analyst ChartNerd commented that "XRP is still above the Monthly Supertrend indicator," which "means the bull market is still going strong."
ETF demand remains strong… Potential for a bull market
While short-term trends remain uncertain, spot exchange-traded funds (ETFs) based on XRP have consistently delivered returns. Launched on November 13th, these ETFs have outperformed Bitcoin (BTC) and Ethereum (ETH)-based products, indicating continued robust institutional demand.
The market is focusing on the possibility that the medium-term trend could shift depending on the short-term movement between $1.77 and $1.95. With technical and fundamental perspectives diverging, XRP is currently at a crossroads.
🔎 Market Interpretation
XRP has seized the opportunity for a short-term rebound by reclaiming the $1.80 support level, but a breakdown below $1.77 still presents a downside risk. While there are bullish signals, such as the RSI rebound and the continuation of the supertrend, a neutral stance is warranted due to slowing on-chain indicators and concerns about a double top pattern.
💡 Strategy Points
In technical analysis, $1.77 and $1.95 are key support and resistance levels. The possibility of a trend reversal should be closely monitored, depending on whether these levels are broken. A comprehensive approach is necessary, taking into account fundamental trends, such as ETFs.
📘 Glossary
- Double bottom: A pattern that forms two bottoms and then rebounds, which is interpreted as a signal for a bullish reversal.
- RSI: An indicator that indicates the oversold/overbought status of an asset.
- Supertrend: A technical auxiliary indicator that visually shows trend reversals.
💡 Want to know more? AI-prepared questions for you:
A. Technically, XRP is trading above the monthly Supertrend indicator, suggesting a bullish trend. However, in the short term, it is unable to establish a clear direction within the trading range.
A. The RSI indicator indicates whether selling pressure is excessive. A reading of 22 indicates severely oversold conditions, while a recovery to 45 indicates that selling pressure is waning and buying pressure is influx.
A. A double top is a pattern of two peaks followed by a decline, and is interpreted as a strong bearish reversal signal. If XRP breaks below the neckline at $1.77, the possibility of a downtrend increases.
A. The Ripple ETF is a financial product based on XRP and serves as an indicator of institutional demand. Its strong performance indicates continued market confidence in XRP.
A. A decrease in the number of active wallets may be seen as a negative sign, indicating reduced participant demand. However, this phenomenon is often observed during sideways price movements, and can be interpreted as such.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
Get real-time news... Go to TokenPost Telegram
Copyright © TokenPost. Unauthorized reproduction and redistribution prohibited.
