After losing support above the 50 and 100 exponential moving average levels, received $XRP
A strong hit, having dropped by more than two points and is now trading at around $2.12. At first glance, this pullback may seem like a bearish signal, but the bigger picture suggests that $XRP may be preparing for a much stronger rebound. Today, the asset landed exactly on its 200-day moving average, which has historically served as dynamic support for several key cryptocurrencies.
Statistically, a rebound from this point is not only possible but also typical, especially when selling momentum is accompanied by higher trading volume and RSI indicators moving toward the oversold zone. There are still many opportunities for a reversal as the RSI for $XRP is currently just above 45.
In terms of structure, XRP has been forming a descending triangle over the past few months and seems to be approaching its end. Although this decline is sharp, it appears to be a retest of the 200 exponential moving average, alongside the lower trendline of support for the larger pattern. Successful stability at this level could lead to a breakout movement towards the $2.45-$2.60 range, completing the final part of the consolidation.
It is important for investors to remember that this could be a trap for bears, a deceptive move aimed at shaking out weak hands before the price reverses. A short-term recovery to the $2.20 area by XRP may indicate a return of buying interest and the beginning of an upward trend. Currently, key levels to watch are resistance at $2.26 and $2.45, and support at $2.09.
Breaking through either of these will provide a clear direction signal, but if overall sentiment does not worsen, the current setup favors a bounce. In short, the recent drop in XRP may cause concern, but it could also act as a catalyst. When psychological and technical support levels converge, XRP is in a critical recovery zone. The bullish reversal hypothesis should be confirmed by volume confirmation and daily closes above $2.
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