XRP rally loading? Traders turn aggressive as bears lose control

Key Takeaways

What is the key support of XRP?

According to on-chain data, the key support level for XRP is at $1.75, where investors have accumulated 1.80 billion XRP.

Is XRP’s bearish trend ending?

The formation of a bullish Morning Star candlestick pattern at support, along with a price rebound from the $1.85 level, suggests that the downtrend may be nearing an end.

With today’s 4.55% price uptick, XRP, the fourth-largest cryptocurrency by market capitalization, appears to be ending its bearish trend as it forms a bullish setup at the key support level of $1.85, which has a history of strong price reversals.

However, this setup comes after the asset dropped more than 29% amid the recent market downtrend.

XRP’s positive outlook appears to be reinforced by traders, investors, and the price chart on the daily timeframe.

As of press time, XRP is trading at $2.03, up 6.50% on the day.

Despite the price increase, market participants remain hesitant, as reflected in the trading volume, which has dropped 52% to $3.65 billion during the same period, according to CoinMarketCap data.

XRP technical outlook and key levels to watch 

AMBCrypto’s technical analysis suggests that XRP is still in a downtrend, as the price continues to trade below the 200-day Exponential Moving Average (EMA), an indicator that reveals whether an asset is in an uptrend or a downtrend.

With today’s price uptick, XRP appears to be taking a step toward ending its prolonged bearish trend.

According to the daily chart, XRP is forming a bullish Morning Star candlestick pattern after testing the key support level of $1.85.

Source: TradingView

Based on the current price action, if bulls manage to hold above the key support level, a potential reversal could be likely.

Given the current market sentiment, a well-followed crypto analyst shared a post on X (formerly Twitter), noting that market participants previously accumulated 1.80 billion XRP at the $1.75 level, which further establishes it as a key support.

The rising price has pushed XRP’s Average Directional Index (ADX) value above 34.08 — surpassing the key threshold of 25 — indicating strong directional momentum in the asset.

Whereas, the Chaikin Money Flow (CMF) value remains negative and currently stands at -0.07, indicating persistent selling pressure and a lack of significant capital inflow despite the recent price rebound.

Investors and traders turn bullish

In addition to the accumulation at the $1.75 level, on-chain analytics firm CryptoQuant revealed today that XRP reserves on Binance are falling, with a decline of 3 million tokens recorded.

Source: CryptoQuant

A drop in exchange reserves suggests that market participants are transferring assets from exchanges to their wallets, which typically indicates accumulation.

Meanwhile, intraday traders also appear to be following whale activity, as their bets on long positions continue to rise, according to derivatives platform CoinGlass.

Data revealed that XRP’s major liquidation levels stood at $2.006 on the lower side and $2.072 on the upper side at press time.

Source: CoinGlass

These levels are acting as strong support and resistance for XRP, as traders at these zones have built $22.55 million worth of over-leveraged long positions and $10.39 million worth of over-leveraged short positions.