XRP's Downtrend Shows Signs of Weakness — Are Bulls Ready for a Comeback?

XRP continues to face challenges with its ongoing downtrend, but recent movements in the market suggest that sellers may be losing their control. Recent price fluctuations indicate that upward movements are becoming more pronounced, while the downward momentum is easing, signaling that buyers may be quietly entering the market. A substantial breakout above critical resistance levels could indicate that the bulls are preparing for a significant counterattack.

Key Takeaways

XRP is in a prolonged downtrend but may be showing signs of buyer interest.
Recent market behavior indicates improving upward momentum and diminishing downward pressure.
A crucial resistance level is set at $2.48; a breakout above this could signal a bullish trend.
The support levels to watch are between $1.95 and $1.88, with a critical low of $1.40 looming as a potential target for pessimistic trends.

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Current Bearish Trend: The Limiting Red Trend Line

Recent updates from MakroVision Research show that XRP's overall market structure remains firmly in a downward trend, characterized by sharply declining red trend lines. These lines continue to inhibit any recovery attempts, indicating a predominantly bearish outlook.

However, the internal dynamics of the market are beginning to show signs of improvement. Short-term price patterns demonstrate that upward movements are gaining strength, becoming more rapid and well-defined. In contrast, the downward movements are less aggressive, taking longer to develop and showing diminishing momentum.

This change is a typical sign of decreasing selling pressure and rising buying interest at lower price levels. Although XRP remains below a significant resistance area, its internal market dynamics are displaying more strength than before.

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Source: Chart from MakroVision Research on X

If XRP can successfully break above the red trend line near $2.48, it would unleash the bullish potential that has been slowly building beneath the surface. Without this essential breakout, the cryptocurrency will maintain its technically pressured state, though signs of a potential reversal are increasingly evident.

Key price levels to monitor include the $2.20 – $2.22 resistance zone, the critical $2.48 breakout level, and the support area around $1.95 – $1.88, which corresponds with both Fibonacci retracement levels and recent price reactions.

A Battle of Trends: Bearish Outlook vs. Bullish Internal Dynamics

In summary, researchers at MakroVision highlight that XRP currently finds itself at a crossroads. While the larger trend remains downward, the internal structure of the price is increasingly bullish. The decrease in downward pressure makes the current chart setup particularly intriguing.

The future of XRP hinges on its ability to achieve a sustainable breakout above the essential resistance levels mentioned earlier, particularly the $2.48 trend line. If XRP can turn this major resistance into a support level, analysts caution that the accumulated bullish momentum could lead to a swift price increase.

The pressing question remains: will XRP manage to execute a significant trend reversal and leverage its internal strength, or will the prevailing bearish forces push the price down toward the critical low of $1.40?

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XRP trading at $2.06 on the 1D chart | Source: XRPUSDT on Tradingview.com