XRP, despite signs of rebound, 'weak rise' warning

▲ XRP/ChatGPT generated image

Although XRP has entered a short-term stabilization phase, an analysis suggests that an unstable structure persists in its mid-to-long-term trend.

According to U.Today, a cryptocurrency specialized media outlet, XRP is currently trading in the mid-$1.40s, maintaining above a new support zone formed around $1.38. This support line has been tested multiple times, and an inflow of buying pressure has been repeatedly confirmed, but confidence in the strength of demand is still lacking.

Changes are detected in the short-term structure. XRP has started to form progressively higher lows and is showing potential for a momentum shift by breaking above its short-term moving averages. However, the $1.50 to $1.55 range holds a major resistance where the price has been pushed back multiple times in the past, acting as a critical zone limiting upward movement.

If this resistance zone is broken, the next supply zone is suggested to be around $1.70. Conversely, if a breakout does not occur, the current rebound is likely to remain another lower high forming within a larger downtrend structure.

The biggest variable currently is trading volume. While the initial rebound was accompanied by increased trading activity, volume has recently turned to a declining trend. This is interpreted as a sign that market participation, necessary to sustain an upward trend, is decreasing. If the decline in trading volume continues, a structure unable to withstand selling pressure in the resistance zone could form.

The Relative Strength Index (RSI) is moving above the neutral line, indicating limited upward momentum, but it is considered insufficient to confirm a clear direction. Overall, the market is showing stability but has not formed a clear trend.

Ultimately, XRP is holding above its support line and maintaining short-term rebound signals, but it is in a structure where decreasing trading volume and the burden of key resistance zones are simultaneously at play. Whether an upward trend reversal occurs depends on a breakout of resistance and a recovery in trading volume.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*