XRP Shows Early Signs of a Bullish Reversal as Momentum Begins to Rebuild

XRP is beginning to flash early signals of a potential bullish reversal, with its latest price behavior suggesting that a move toward the $2 level is not out of reach if momentum continues to strengthen. While the trend has not officially shifted, the structure forming on the charts is showing characteristics often seen before a meaningful upside move.

One of the most notable developments is XRP’s reaction along the lower boundary of its descending channel. After tapping the bottom of the structure, the asset absorbed a wave of aggressive selling before staging a clean bounce—an encouraging sign that selling pressure may be losing steam. This rebound wasn’t weak either; intraday action has already produced a higher low, a key component needed before any real reversal attempt can solidify.

Technical indicators also reflect this shift. The RSI has exited oversold territory and is gradually pushing toward neutral levels, signaling that bearish momentum is easing. However, current volume remains muted, which makes this stage of the move fragile. Historically, this aligns with phase one of a reversal cycle, where forced selling gives way to more controlled accumulation as buyers cautiously step in.

Despite these positive signals, calling for a confirmed trend change remains premature. XRP still faces resistance from the downward-sloping 20-day and 50-day EMAs, both of which continue to act as dynamic barriers. Yet this is exactly where many reversals begin—when price begins pressing back into declining moving averages after a prolonged downtrend.

A decisive reclaim of the 20-day EMA would be a key trigger that turns the current bounce into a true short-term reversal. If that occurs, the $2 region becomes a natural upside magnet. Not only does it align with the mid-range of the descending channel, but it also sits at a strong psychological level. With minimal structural resistance between current prices and that zone, a retest of $2 is entirely plausible if momentum continues to build.