XRP Price Struggle: Rejection at Key Volume Node Signals Ongoing Bearish Trend

XRP has encountered a setback, facing rejection from a significant volume resistance level close to the point of control (POC). This has confirmed another lower high and keeps the downside risk alive toward the $0.58 support level.

Key Takeaways

XRP's recent price rally faces resistance near the Point of Control, indicating a continued bearish trend.
The ongoing bearish structure is marked by lower highs and lower lows.
The next significant downside target is the $0.58 range low, an important support level.
A bounce at the $0.58 level may occur, but it may not signify a trend reversal without a structural breakout.
Current bearish momentum strengthens as sellers remain active.

XRP price has shown persistent weakness after its recent rally failed at a crucial volume resistance level. This reinforces a broader bearish market trend. The rejection occurred near the Point of Control (POC), a key area with high trading volume, where significant trading activity has been concentrated in the past.

When the price does not succeed in reclaiming and holding above the POC, it typically indicates that supply levels are dominant, reflecting a lack of buyer confidence at these higher price levels.

XRP price rejections continue bullish trend

Technical Insights on XRP Price

XRP price rally fails at volume node as bearish trend continues - 1

The Point of Control is crucial in understanding volume profiles, representing the price where the highest transaction volume occurs. It serves as a pivot point between bullish and bearish market phases. When XRP is priced below this threshold, the market tends to exhibit weakness, remaining in a constrained range with resistance continuing to impede upward moves.

The latest rejection at this volume node indicates persistent selling activity at this price zone. Instead of breaking through resistance and sustaining higher values, XRP's price stalled and reversed, revealing insufficient demand to offset the supply.

This detail is critical; failed attempts to breach high-volume resistance typically lead to deeper price declines. The market effectively rejects any endeavor to elevate into higher price territory, prompting the price to return and test lower liquidity zones where buying activity might re-emerge.

Confirmation of Bearish Market Structure with Lower Highs

From a market structure viewpoint, XRP is locked in a bearish framework characterized by consecutive lower highs and lower lows. The recent rejection from the POC has confirmed another lower high, affirming that the bearish trend is still active and a bullish reversal has not transpired.

The significance of lower highs lies in their demonstration of seller control over the trend. Even when XRP experiences a rally, it consistently stumbles upon resistance levels and fails to reclaim essential price points on closing terms. This pattern fosters ongoing downward momentum and raises the likelihood of revisiting previous support levels.

Until XRP succeeds in reclaiming the POC and maintaining stability above it, the bearish structure will persist. Any rallies toward resistance are likely to be perceived as corrective moves rather than indications of a confirmed trend change.

$0.58 Set as the Next Target

The next major support target sits at the $0.58 range low, an essential area in XRP's broader trading context. This zone has been tested multiple times, with each attempt resulting in a bullish response followed by short-term recoveries.

Due to this recurring scenario, $0.58 is seen as a critical liquidity and demand zone where buyers may attempt to defend against further declines. However, it is essential to acknowledge that even if XRP bounces back from the $0.58 level, it might still be part of a larger sideways trading pattern rather than the onset of a genuine trend reversal.

In range-bound markets, prices typically oscillate between established resistance and support before any decisive breakout occurs. A bounce from the range low can perpetuate the sideways trend, while a breakdown beneath this level could initiate accelerated declines.

Strengthening Rejections with Bearish Follow-Through

The rejection has proven to be significant, with XRP producing several bearish follow-through candles that validate the active downside momentum. These follow-through candles are crucial as they affirm that sellers not only defend resistance successfully but also apply downward pressure on price with conviction.

This aspect is important because weak rejections often result in sideways price movements, while robust rejections with follow-through suggest upcoming continuation towards lower liquidity zones.

For XRP, bearish follow-through signals that the market is poised to drop further unless buyers step in forcefully to regain market structure. The longer XRP remains confined below the volume resistance area, the more probable it is for the price to continue moving toward the range low.

Looking Ahead: Price Action Expectations

XRP currently shows vulnerability after the rejection at the high-volume Point of Control, confirming another lower high while maintaining a bearish market structure. As long as the price remains below the volume resistance, the likelihood of downward movement toward the $0.58 range low increases.

If XRP does reach the $0.58 mark, a bounce can occur based on historical trends; however, it is likely to remain within the existing sideways range unless a significant structural breakout takes place. A decisive fall below $0.58 would further shift momentum into a bearish direction, opening up additional downside targets.