XRP continues its journey across a challenging technical terrain as it consistently trades within a discernible descending channel on the daily chart. This bearish structure has kept the price action subdued, with every recovery attempt facing resistance along the upper trendline. This pattern mirrors a wider conflict between bulls striving to uphold key support areas and bears holding onto short-term momentum.
As the price of XRP compresses further within the channel, it indicates that a significant move might be imminent. The question that remains critical is whether the bulls can gather enough power to reverse the trend or if the bears will prolong their reign.
At present, XRP displays signs of a possible bearish movement after facing substantial resistance near the upper edge of its descending channel on the daily chart. This upper trendline has served as a robust barrier, stopping recent bullish attempts and reinforcing the overall downtrend.
The rejection at this level alludes to the sellers still commanding the market. If the bearish momentum intensifies, the altcoin might revisit lower support levels within the channel, potentially retesting the lower boundary of the descending channel.
In addition, the Moving Average Convergence Divergence (MACD) indicator is nearing a potential bullish crossover. This looming intersection between the MACD line and the signal line has drawn traders’ attention, particularly as it forms near a vital technical zone. A confirmed crossover could signal a possible trend reversal, suggesting an increase in bullish strength after a period of downside pressure.
However, given the recent market instability and past failed breakouts, a sense of skepticism remains. Previous attempts in similar situations have resulted in fakeouts, temporary movements that quickly died down. Therefore, confirmed price action and volume are recommended before becoming too aggressive in positioning. If a breakout from nearby resistance accompanies this cross, it could herald the start of a more vigorous upward move. Otherwise, it risks being just another false alarm in a turbulent market.
Currently, XRP is at a pivotal point as it heads towards the lower boundary of its descending channel. This area has acted as a dependable support level in recent weeks, staving off deeper losses and providing a base for minor rebounds. As the price action heads towards this zone, traders are keenly observing whether buyers can defend it once more, or if the bears will enforce a decisive breakdown.
A steady hold above this support zone could set the stage for a short-term bounce, aiming for mid-channel resistance levels. However, a clean break below this lower boundary might trigger downside pressure, exposing XRP to new multi-week lows such as $0.9353. Given the current fragile sentiment, this support test could be crucial in determining XRP’s next trend.
