I. Distinguishing pullbacks and reversals on the XRP chart:
1. Regarding the main trend:
• If XRP is in an uptrend (for example: from $1.85 to $2.20), a correction to the $2.05 area is only a pullback if it does not break the nearest low (for example $2.00).
• Conversely, if XRP drops significantly below the $1.95 (previous low) and fails to recover quickly, it is likely to reverse the trend.
2. Regarding timing:
• Pullbacks usually occur within a few hours to a few days (if you use H1 to H4 timeframe).
• If XRP continues to trend downward over multiple sessions and fails to create higher highs, the likelihood of a reversal will be higher.
3. Regarding trading volume:
• A pullback will be accompanied by decreasing volume as the price corrects – indicating that sellers do not really have control.
• If XRP drops with high volume, breaking important support, it could signal a strong reversal.
4. Regarding technical structure:
• In an uptrend, if XRP maintains higher lows, then a correction is a pullback.
• If XRP breaks the nearest low and creates a reversal pattern like 'head and shoulders' or 'double top', traders need to consider the possibility of a reversal.
Current example (hypothetical):
The price of XRP just increased from $2.04 to $2.22, then slightly corrected to the $2.10 range. If this level holds and the price bounces back, this is a pullback.
However, if the price drops sharply below $2.04 and closes below this level on the 4H or Daily timeframe, especially with high volume, the likelihood of a reversal will be higher than a pullback.
II. Practical application: Detailed analysis of the current situation on the XRP chart (Current price range, support – resistance areas, and corresponding trading strategies.
🔍 Technical analysis XRP (5/5/2025)
1. Current trend:
• XRP is oscillating in the price range of $2.14–$2.21, indicating accumulation after a strong increase since the beginning of April.
• The price remains above the 20-day EMA (~$2.18), indicating that the medium-term uptrend is still intact.
2. Important support and resistance:
• Support: $2.11 (short term), $2.00 (psychological support), $1.85 (strong support).
• Resistance: $2.22–$2.23 (near resistance area), $2.33 (nearest peak), $2.36 (April peak).
3. Technical indicators:
• The current RSI is around 53.85, indicating that the market is in a neutral state, not overbought or oversold.
• Elliott wave model suggests the possibility of forming a bullish crossover pattern, but the current structure is not clear.
4. Movements of major investors:
• Data from Santiment shows that 'whales' are accumulating XRP, which could be a sign of an upcoming price increase, especially if the XRP ETF is approved.
📈 Suggested trading strategy
Scenario 1: Pullback in an uptrend
• If the price corrects to the support area of $2.11–$2.14 and a reversal candle signal (like a pin bar or engulfing) appears with increased volume, a buying order can be considered.
• Place a stop loss below the strong support area of $2.00.
• Take profit target at resistance area $2.22–$2.33.
Scenario 2: Breakout resistance
• If the price breaks through the resistance area of $2.22–$2.23 with increased trading volume, a buying position can be opened according to the trend.
• Place a stop loss below the breakout area.
• Take profit targets at $2.33 and further at $2.36.
Scenario 3: Breaking support
• If the price drops sharply and breaks the support area of $2.00, especially with high volume, a selling position can be considered.
• Take profit targets at subsequent support areas like $1.85 and $1.70.
✅ Conclusion
XRP is currently in an accumulation phase with the medium-term uptrend still maintained. Monitoring important support and resistance areas, along with technical signals, will help investors make informed trading decisions. In particular, the movements of major investors and the potential approval of the XRP ETF could be driving factors for the price in the near future.
