XRP is attempting to rebuild structure after reclaiming higher levels from this week’s sharp sell-off. The move places the asset back inside a tightening pattern, with price now pressing into overhead resistance that has repeatedly capped upside attempts.
XRP Rebounds After Steep Decline
The chart shows a rapid breakdown at the start of December, with XRP falling from above $2.18 to under $2.00 in a single wave of high-volume selling. The decline resembled the broader market’s sharp pullback, but buyers stepped in aggressively around $1.98, triggering a strong intraday reversal.
The rebound carried XRP back toward the mid-$2.10 range, where price is now stabilizing. Volume expansion during the upswing confirms renewed interest after sellers exhausted momentum near the lows.
Technical Structure Tightens Near Resistance
The analysis highlights XRP’s return to the sloping resistance line that has guided the market for weeks. Each upswing within this structure has faced compression from overhead supply, creating a narrowing channel that signals indecision rather than a confirmed trend shift.
The chart shows a sequence of triangle and wedge formations that repeatedly resolved lower, with rallies failing to break the dynamic resistance above. This latest move puts XRP directly into that same boundary, making this zone a critical test for buyers.
If bids fail to hold near the recent local high, the setup leans toward another rotation lower, potentially back toward the support zone identified in the analyst’s target line.
Conditions Needed For Structural Improvement
For XRP to escape this corrective phase, buyers must secure a clear break above the resistance line and defend the latest higher low carved during the rebound. The analysis emphasizes that failure to maintain this higher low would reset the bearish continuation, reestablishing downward pressure toward previous support.
Until a breakout occurs, the market remains in a compression pattern where momentum is easily disrupted by supply overhead.
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Market Tone Shows Early Recovery Signs
Despite the cautious setup, the chart indicates constructive signs:
- •Strong reaction from support
- •Rising buy volume into the rebound
- •Clear shift in short-term sentiment after the December drop
XRP now sits at a decisive point. A successful push through resistance would signal that buyers have finally absorbed overhead supply, shifting the bias toward a constructive advance. Until then, the market continues to balance between recovery attempts and corrective pressure.