XRP has staged a notable recovery from the critical support zone around $2.22804, bouncing strongly off this key level that coincides with the bottom of a descending trend channel.
The cryptocurrency is currently trading at $2.28758, having climbed above the 38.2% Fibonacci level at $2.27575, suggesting that buyers are regaining control after the recent pullback from higher levels.
The Fibonacci retracement tool reveals a well-defined roadmap for XRP’s potential recovery, with the next significant resistance appearing at the 50% level around $2.29049. A sustained move above this threshold could open the door for a test of the 61.8% Fibonacci retracement at $2.30523, followed by the complete retracement level at $2.35294.
Recent price action appears to be forming a potential double bottom pattern around the $2.22804 support level, which could signal a reversal of the earlier downtrend if confirmed with a break above the intermediate highs. This bullish reversal pattern would be particularly significant given the confluence with key Fibonacci support levels.
Potential Trend Shift
The moving average configuration shows signs of a potential bullish shift in momentum. While XRP price had been trading below both the 100 SMA (blue line) and 200 SMA (red line) during the recent decline, the current bounce has brought price back toward these critical dynamic resistance levels.
The gap between the moving averages appears to be narrowing, suggesting that the bearish momentum that characterized the earlier decline may be waning. If XRP can sustain a move above both moving averages, it would signal a more decisive shift in trend direction and potentially attract additional buying interest from momentum traders.
The descending trend lines that have been capping rallies are also coming into focus as key resistance levels to watch. A clean break above these technical barriers, combined with a move above the moving averages, would strengthen the case for a more substantial recovery toward the upper Fibonacci levels.
Early Bullish Momentum Signs
The stochastic oscillator has turned higher from oversold conditions, indicating that selling pressure has begun to ease and buyers are starting to regain control. The oscillator has plenty of room to climb before reaching overbought levels, suggesting that the current recovery has potential to extend further.
The MACD histogram is showing signs of bottoming out after the recent decline, with the signal lines appearing to converge near the zero line. While still in negative territory, the rate of decline has slowed considerably, hinting at a potential positive crossover that could confirm the bullish momentum shift.
Looking ahead, XRP traders should focus on the channel resistance as the key test for bulls. A decisive break above this level, accompanied by strong volume, could trigger additional buying interest and spur a reversal from the ongoing slide.
