XRP Faces Key Technical Test: Can Bulls Regain Control?

• XRP unexpectedly broke downward from an ascending triangle, defying its usual bullish breakout tendency.
• The 12-hour chart hints at a potential double bottom, but another drop remains possible.
• Key support levels to watch are $2.07, $2.00, $1.855, and $1.73.

XRP’s price action has taken an unexpected turn, defying historical patterns and raising questions about its next move. According to market insights, the asset recently broke down from an ascending triangle pattern, a formation that statistically favors upside breakouts 70-75% of the time. However, in a surprising twist, XRP moved to the downside instead, highlighting the unpredictability of the current market conditions.

Double Bottom or Further Decline?

On the 12-hour chart, XRP now appears to be forming a potential double bottom—a classic reversal pattern that could signal a recovery. However, there’s still a chance for another leg down to complete the measured move of the previous pattern. The coming sessions will be critical in determining whether the asset can find a stable support level and reverse its losses.

XRP Faces Key Technical Test: Can Bulls Regain Control? 4

Notably, a key observation in the past month was the lack of attention toward XRP’s downside target. While many focused on the bullish breakout potential, the recent dip has forced traders to reassess their strategies.

4-Hour Chart Signals Recovery Attempts

Zooming into the 4-hour time frame, XRP recently printed seven consecutive red candles, followed by three green ones, signaling a potential shift in momentum. If the price can solidify support around the $2.07 level, it could confirm the double bottom formation, providing a much-needed boost for the bulls.

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Beyond this immediate level, three additional price targets remain significant: $2.00, $1.855, and $1.73. These levels could serve as potential accumulation zones for traders looking to buy the dip.

Caution Remains Amid Volatility

Despite the optimism surrounding a possible recovery, the analyst emphasizes a cautious approach, advising against leverage trading. Instead, spot limit orders at key support levels could present strategic entry points for those eyeing long-term positions.

As XRP navigates this crucial phase, traders will be watching closely to see whether it can establish a strong foundation for a reversal or if further downside pressure remains in play.

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