XRP Approaches Key Support as Market Signals Potential Reversal

XRP is once again testing the lower boundary of its long-standing descending channel, a level that has repeatedly sparked strong rebound moves throughout its broader downtrend. For weeks, the price has hovered around this crucial support, and each retest has helped refine the structure of what many traders consider a classic “trampoline zone.” This is a technical area where oversold conditions, compressed price action and diminishing bearish momentum often combine to produce sharp upward reactions.

This support line is far more significant than a simple visual marker on a chart. Historically, it has been the point where selling pressure begins to fade and buyers step in with enough strength to stall the decline, even if temporarily. Current indicators support this dynamic. The RSI is trending near oversold territory and showing signs of easing bearish momentum, suggesting sellers may be losing control. Meanwhile, trading volume has declined during the most recent downturn, often a sign that aggressive selling is slowing rather than intensifying.

Price action is also beginning to stabilize along the trend support, and momentum indicators are flattening—both early signs that the market may be preparing for a shift in direction. Should XRP hold this line and buyers regain footing, the first significant upside target sits near the channel’s midpoint between $2.40 and $2.50. Achieving this level would indicate a meaningful bounce.

Beyond that, XRP faces the cluster of the 50-day, 100-day and 200-day moving averages overhead. Reclaiming these would require sustained buying strength and would signal a shift from short-term relief to the beginning stages of a larger recovery trend. While less likely at the moment, a full breakout above the descending channel would mark a significant bullish transition and potentially reshape XRP’s broader market trajectory.

This confluence of oversold conditions, reduced sell volume and structural support leaves traders watching closely for a potential reversal.