XRP's recent rebound at the $2.10 support level demonstrates a possible weakening of bearish momentum, despite current challenges within a descending channel.
Support and Resistance Levels
Resistance levels are forming around the $2.40 and $2.60 marks. XRP remains within a well-defined downtrend. The asset needs a rise of 40% from its current position to reach $3, and breaking out from this range could be a key driver for a rally.
Trading Volume and Seller Pressure
The decreasing trading volume during the downtrend is an encouraging sign for XRP bulls. A stronger rebound may occur if this trend persists and selling pressure eases off. However, even after the recovery, XRP remains trapped in the downward channel that has dominated the market for weeks.
Market Perspectives for XRP
XRP might benefit from a general risk-on atmosphere if Bitcoin and other major cryptocurrencies recover, increasing the chances of regaining higher levels. However, failure to maintain the $2.10 support may lead to another drop towards the next critical support at $1.85.
To progress further, XRP needs to overcome resistance levels and establish bullish momentum. Market mood and liquidity will play a significant role in XRP's price movement in the near future.
