XRP Shows Early Signs of Recovery but Bearish Pressure Still Dominates

XRP is attempting to build upward momentum, but current market structure shows the asset caught between early recovery signals and an overall bearish trend. Recent price action highlights a technically clean rebound from the lower boundary of its falling channel, a zone that historically attracts strong demand. Buyers defended the $2.00–$2.10 support range convincingly, creating a reaction that pushed XRP back into the mid-channel region.

Momentum indicators are showing modest improvement. The RSI has risen out of oversold territory and is moving toward the mid-40s, often a sign that buyer interest is returning if price continues upward. Trading volume during the bounce also increased beyond typical levels. Although not indicative of a full trend reversal, it suggests that previously inactive participants are reentering the market.

However, XRP still faces significant overhead resistance. The price must contend with a cluster of downward-sloping moving averages — the 20-EMA, 50-EMA and 100-EMA — all reinforcing the medium-term bearish outlook. Until XRP breaks above this compression zone, roughly between $2.30 and $2.50, any bullish momentum remains speculative. The broader market structure continues to show lower highs and adherence to the falling channel, limiting the argument for a confirmed trend change.

Investors should watch two possible scenarios. If XRP can reclaim and hold above $2.36, aligned with the 20-EMA, the next key target becomes the $2.50–$2.55 region, where horizontal resistance intersects the 50-EMA. A clean breakout here would weaken the channel and potentially signal the early stages of a trend reversal.

Alternatively, failure to break current resistance could send the price back toward the channel midpoint or even retest the $2.05–$2.10 support range. Such a rejection would delay any recovery narrative and reinforce the prevailing downtrend.