XRP has surged on the daily chart, hovering around $1.31, marking a noteworthy comeback for buyers for the first time since September. For much of October, XRP had retreated from the $1.55 region to as low as $1.25. The latest daily candle’s positive closure signals that prices are beginning to recover.
Buying Pressure Emerges at $1.25 Level
Despite the limited scope of recovery, this development is viewed as a crucial threshold in the market. Recent attempts to rally were quickly met with selling pressure, as prices continued to record lower peaks. However, the recent green closure suggests a slowing of the selling momentum, at least in the short term.
The $1.25 to $1.30 price range is currently emerging as a support zone. XRP swiftly rebounded after touching this level, leaving a long lower wick on the candlestick chart. This pattern indicates that buyers stepped in to counter the selling pressure at the drop. This area also held firm in September, leading to a robust rise to $1.65 afterward.
The response from the $1.25 to $1.30 band is one of the first tangible signs that the relentless selling pressure of recent weeks might be easing.
Key Resistance at $1.33 in Focus
In the short term, $1.33 emerges as the pivotal level to watch. The orange moving average sits just above the current price, with XRP needing a daily close above this to gain upward momentum. If surpassed, the $1.37 to $1.38 range appears as the next resistance target.
Technically, this region represents a strong barrier due to the convergence of multiple moving averages. Previously, XRP failed to maintain its position above this level during the last decline. Therefore, market reactions to another potential rally attempt at this juncture will be carefully monitored.
Indicators Signal Potential for Recovery
The Relative Strength Index (RSI) is currently near 40. While this is considered weak, it doesn’t suggest an oversold condition. This implies that the price rebound is not simply a response to an exceedingly pressured dip, presenting room for upward movement if buyers maintain control.
Conversely, trading volume remains low. For a more sustainable recovery, an increase in volume during upward movements is essential. Without this, the current activity may only constitute a brief respite.
A daily close above $1.33 for XRP is seen as critical for confirming the recovery, potentially putting $1.38 and then $1.45 back on traders’ radar.
However, downside risks have not been entirely eliminated. If the $1.25 support is lost, this response could weaken, leading prices to target $1.20 or even lower levels. As such, the next few daily candle closures will better clarify whether this movement represents a genuine trend reversal or merely a pause in the downtrend.
