Market Overview: XRPUSDT Breaks Key Support, Then Rebounds With Strong Volume Confirmation

Summary
• XRPUSDT formed a bullish engulfing pattern near 1.8511 and broke key support at 1.837, triggering a sharp rebound.
• Momentum shifted from bearish to positive, with RSI and MACD showing strong bullish divergence after an oversold condition.
• Volatility spiked sharply around 05:30 ET, with volume surging to 2.7M contracts and turnover confirming the price reversal.
• Price retested the 1.8626 Fibonacci level and closed above it, suggesting short-term support may now act as a floor.
• A Bollinger Band contraction earlier in the day preceded the breakout, indicating a potential continuation of upward momentum.

XRP/Tether (XRPUSDT) opened at $1.8827 on 2025-12-17 at 12:00 ET, reached a high of $1.9341 and a low of $1.837, closing at $1.8781 by 12:00 ET on 2025-12-18. Total 24-hour volume was 45.8M contracts with a turnover of approximately $84.5M.

Structure and Momentum

XRPUSDT displayed a clear breakdown and subsequent rebound from a critical support level around $1.837, which had acted as a floor in prior 5-minute intervals. A bullish engulfing pattern formed following the breakdown, indicating a short-term reversal in sentiment. The RSI reached oversold territory below 30, confirming bearish exhaustion, before turning sharply upward.

Volatility and Bollinger Band Dynamics

Volatility was initially compressed into a narrow Bollinger Band range, signaling a potential breakout. The price eventually broke out to the downside, breaking the lower band, but then closed strongly above the middle band, suggesting that the downward move may have been a false break. The subsequent reversal was accompanied by a widening of the bands, indicating increased uncertainty and potential for further consolidation.

Volume and Turnover Analysis

Volume spiked significantly around 05:30 ET and again around 14:45 ET, coinciding with sharp price swings. Notional turnover confirmed these volume spikes, particularly after the 05:30 ET rebound, where large volumes accompanied a move back toward the 1.86–1.87 consolidation range. A divergence between price and volume was noted in the earlier bearish phase, weakening the case for a sustained downtrend.

MACD and Fibonacci Retracements

The MACD crossed into positive territory after a bearish phase, indicating a shift in momentum. A bullish crossover occurred shortly after the price rebounded from $1.837. Fibonacci retracement levels showed that the 61.8% level of the previous downtrend aligned closely with the 1.8626 area, which the price successfully retested and held above during the final hours.

XRPUSDT appears to have found support and is showing signs of a potential short-term rally. However, the recent volatility and divergence in earlier phases suggest caution ahead. A retest of key Fibonacci levels or a breakdown below 1.8626 could reignite bearish pressure in the coming 24 hours. Investors should monitor volume behavior and RSI levels for confirmation of trend sustainability.