XRP Signals Potential Recovery as Bitcoin Clears Key Resistance
XRP ($2.7952) printed a “spinning bottom” candlestick on Monday, suggesting early signs of a bullish reversal. This pattern, characterized by wide intraday swings that close near the opening price, reflects indecision between buyers and sellers. Occurring after a 25% pullback from July’s $3.65 peak and at a key support near the August 3 low, it indicates that selling pressure may be easing.
Traders will watch for a close above Monday’s high of $2.84 for confirmation, with XRP currently hovering around $2.80.
Key Technical Levels
- Support: $2.69 (Monday low), $2.65 (May swing high), $2.48 (200-day SMA)
- Resistance: $2.84 (Monday high), $3.38 (August high), $3.65 (July high)
- Momentum: Short-term SMAs remain downward, while the Guppy moving average band stays bearish. A drop below $2.69 could trigger sharper losses.
- MACD: Though negative since late July, a potential bullish crossover may mark the start of a stronger rebound.
Bitcoin Update
Bitcoin has broken above a descending trendline from its $124,000 record high, signaling initial upside potential. However, immediate resistance at the Ichimoku cloud, 50- and 100-day SMAs, and the August 3 low keeps the market cautious. A bearish divergence on the monthly RSI suggests upward moves may face selling pressure. For a clearer bullish confirmation, BTC needs to sustain a break above the Ichimoku cloud.
