XRP News Today: XRP Technical Signal Suggests Short-Term Recovery Buy Trigger

XRP has begun showing signs of a short-term recovery after a prolonged downturn, with a key technical signal suggesting that bearish momentum is weakening. The digital asset is currently trading at $2.94, with strong support forming near $2.86 following a brief test of that level [1]. This support level is reinforced by a candlestick pattern with a long wick and small body, indicating active buying at that price. A successful hold above $2.86 is seen as crucial for confirming a reversal in the near-term trend.

Technical analysis points to a potential “9-count signal” as a catalyst for the reversal. This signal, which appeared after nine consecutive sessions of price declines, is widely used by traders to identify potential exhaustion points in a trend. The signal has historically marked turning points in XRP’s price movement and is now being interpreted as a buy trigger [2]. According to analysts, the formation of this signal suggests that sellers are losing control and that buyers may be stepping in to stabilize the price [3].

Resistance levels for XRP currently stand at $3.05 and $3.15. A breakout above these levels could open the path to $3.25–$3.30 in the coming sessions [4]. Traders are also watching for a move back above $3.00, a key psychological threshold, as confirmation that the recent correction is nearing a bottom. However, a sustained drop below $2.85 would invalidate the buy signal and could lead to a deeper pullback toward $2.70 [5].

The recent price action has been characterized by a series of sharp declines, including notable bearish candles around August 14 and 18. These drops reflected aggressive distribution by sellers, but the emergence of the 9-count signal indicates that distribution pressure may be easing [6]. In addition, XRP is now operating in what appears to be oversold territory, a condition historically associated with reversal setups.

Analysts have also pointed to a tightening consolidation pattern around $2.87, suggesting that the market is entering a phase of indecision before a potential breakout. Some market participants have speculated that a double top reversal pattern is forming, which could confirm a short-term bottom if XRP can reclaim the $3.00 level [7]. A successful move above this level could lead to a more sustained rally, with some analysts forecasting a potential test of $3.10 as a next target [8].

The 24-hour trading volume for XRP has remained strong at $7.39 billion, indicating continued market interest and liquidity [9]. While the token has posted a modest daily gain of 0.59%, it remains down 9.65% over the past seven days. This suggests that the market is still processing the recent selloff, and any near-term recovery would likely be a technical bounce rather than a fundamental reversal.

Market structure analysis reinforces the idea that the asset may be at a turning point. The consistent use of the 9-count signal in previous cycles and its reappearance now adds credibility to the case for a short-term rebound [10]. However, analysts caution that this signal alone does not guarantee a sustained bullish move. A breakout above key resistance levels and a confirmation of increased buying pressure are still needed to solidify the reversal narrative.

Overall, the technical outlook for XRP has improved in recent sessions, with several indicators pointing to a potential short-term recovery. Traders are now focused on whether the price can sustain a move above $2.90 and reclaim key resistance levels in the coming days. If successful, this could mark the beginning of a broader rally in XRP’s price trajectory.

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Source:

[1] XRP flashes major buy signal after dumping over $26 ... (https://finbold.com/xrp-flashes-major-buy-signal-after-dumping-over-26-billion-in-a-week/)

[2] XRP Buy Signal Indicates Short-Term Recovery (https://coinmarketcap.com/community/articles/68a6234f1440f33b5a62eb23/)

[7] Crypto Analysts Spot Bullish Pattern as XRP Price Eyes ... (https://coincentral.com/crypto-analysts-spot-bullish-pattern-as-xrp-price-eyes-break-above-3-00/)

[8] XRP Price Prediction Shock: Hidden Signal Could Trigger ... (https://thetradable.com/crypto/xrp-price-prediction-shock-hidden-signal-could-trigger-explosive-37-rally-to-400-ig--a)