XRP continues to face significant selling pressure as it remains confined within a well-defined descending channel that has dominated price action since mid-May.
The cryptocurrency is currently trading at $2.16538, having declined from the channel’s upper resistance near $2.48320, with the bearish structure suggesting further downside could be in store.
The descending channel formation is clearly visible on the chart, with price consistently respecting both the upper and lower boundaries of this bearish pattern. XRP recently tested the channel’s upper resistance at $2.48320 but failed to break through, reinforcing the strength of the overhead selling pressure. This rejection has led to a measured decline back toward the channel’s lower support zone.
XRP Correction Levels
The Fibonacci retracement levels provide crucial insight into potential support and resistance areas within this downtrend.
The 61.8% retracement at $2.33194 and the 50% level at $2.28521 both served as temporary resistance during recent bounces, highlighting their significance as key levels to watch. Currently, price is approaching the 38.2% Fibonacci level at $2.23849, which could offer some near-term resistance.
However, if the bearish momentum continues, the next major support lies at the 0.0% Fibonacci level around $2.08723, which coincides with the lower boundary of the descending channel. A break below this crucial support confluence could signal an acceleration of the downtrend and potentially target levels well below $2.00.
Bearish XRP Bias
The moving average structure remains decidedly bearish, with XRP trading below both the shorter-term and longer-term moving averages. The red moving average continues to act as dynamic resistance, capping any attempts at recovery rallies. Additionally, the blue moving average has crossed below the red line, confirming the shift in momentum from bullish to bearish.
This bearish crossover of the moving averages typically signals that the path of least resistance is to the downside, supporting the view that any bounces should be viewed as selling opportunities rather than the start of a meaningful recovery. The gap between the moving averages continues to widen, suggesting that bearish momentum is actually accelerating.
The MACD indicator in the middle panel shows a clear bearish setup, with the MACD lines trading below the zero line and the histogram bars remaining negative. While there have been brief periods where the MACD showed signs of bottoming, these oversold bounces have proven to be temporary XRP relief rallies rather than trend reversals.
The stochastic oscillator presents a similarly bearish picture, with both the %K and %D lines spending considerable time in oversold territory below the 20 level. While oversold conditions typically lead to short-term bounces, the persistent weakness in this indicator suggests that selling pressure remains intense and any rallies are likely to be short-lived.
The technical outlook for XRP remains challenging as long as price stays trapped within the descending channel and below the key moving averages. A decisive break below the $2.08723 support level would likely trigger accelerated selling toward the $2.00 psychological level and potentially lower.
Conversely, only a strong break above the channel’s upper resistance and the moving averages would suggest that the bearish phase might be ending.