XRP Shows Early Signs of Recovery but Bearish Pressure Still Dominates. Source: Shutterstock
XRP is attempting to build upward momentum, but current market structure shows the asset caught between early recovery signals and an overall bearish trend. Recent price action highlights a technically clean rebound from the lower boundary of its falling channel, a zone that historically attracts strong demand. Buyers defended the $2.00–$2.10 support range convincingly, creating a reaction that pushed XRP back into the mid-channel region.
Momentum indicators are showing modest improvement. The RSI has risen out of oversold territory and is moving toward the mid-40s, often a sign that buyer interest is returning if price continues upward. Trading volume during the bounce also increased beyond typical levels. Although not indicative of a full trend reversal, it suggests that previously inactive participants are reentering the market.
However, XRP still faces significant overhead resistance. The price must contend with a cluster of downward-sloping moving averages — the 20-EMA, 50-EMA and 100-EMA — all reinforcing the medium-term bearish outlook. Until XRP breaks above this compression zone, roughly between $2.30 and $2.50, any bullish momentum remains speculative. The broader market structure continues to show lower highs and adherence to the falling channel, limiting the argument for a confirmed trend change.
Investors should watch two possible scenarios. If XRP can reclaim and hold above $2.36, aligned with the 20-EMA, the next key target becomes the $2.50–$2.55 region, where horizontal resistance intersects the 50-EMA. A clean breakout here would weaken the channel and potentially signal the early stages of a trend reversal.
Alternatively, failure to break current resistance could send the price back toward the channel midpoint or even retest the $2.05–$2.10 support range. Such a rejection would delay any recovery narrative and reinforce the prevailing downtrend.