XRP Flashes Bullish Reversal Signals – Here Is Why Analysts See Hope After June Crash

4 hours ago 15
  • XRP has dropped more than 20% in June, making it one of the token’s weakest monthly performances in over a year.
  • Analyst Ali Martinez says two bullish technical indicators suggest a short-term relief rally may be approaching.
  • While downside risks remain, July has historically been one of XRP’s strongest months.

June has been a painful month for crypto investors, and XRP holders have certainly felt it.

Ripple’s native token briefly slipped to around $1.01 during last week’s market-wide sell-off, surrendering its spot above USDC by market capitalization as fear spread across digital assets. The correction erased more than 20% from XRP’s value this month alone, marking its worst monthly performance since February 2025.

Still, not everything on the chart looks bearish anymore.

According to crypto analyst Ali Martinez, XRP is beginning to flash a couple of technical signals that have historically appeared near local bottoms. They do not guarantee a reversal, but they may suggest the intense selling pressure is finally starting to lose momentum.

XRP chart TD Sequential Indicator

Two Bullish Indicators Are Starting to Align

The first signal comes from the Tom DeMark Sequential indicator, a popular technical tool used to identify trend exhaustion.

Following XRP’s recent plunge, the indicator has generated a fresh buy signal on the daily chart. Martinez noted that similar setups have previously been followed by short-term rebounds lasting anywhere from one to four daily candles. In other words, sellers may be running out of fuel, at least temporarily.

A second technical pattern has also emerged.

Over the last three daily candles, XRP has formed what technicians recognize as a Morning Star Doji pattern. Traditionally, this formation appears after extended declines and often signals that bearish momentum is beginning to weaken as buyers slowly regain control.

Neither signal works in isolation. But when multiple reversal indicators appear together after a sharp correction, traders generally pay closer attention.

$1.30 Becomes the First Major Target

If buying volume begins increasing alongside those bullish signals, Martinez believes XRP could attempt another move toward the $1.30 resistance area.

That level has already proven difficult.

Earlier this month, XRP briefly rallied toward $1.30 during a broader crypto recovery before sellers stepped back in. The rejection eventually pushed the token all the way back to the $1.01 region as market sentiment deteriorated once again.

Any renewed recovery will likely have to overcome that resistance before traders begin talking about a more meaningful trend reversal.

XRP Monthly Returns

Bears Still Hold an Important Advantage

Despite the improving technical signals, downside risks have not disappeared.

Martinez also highlighted several important support levels using the UTXO Realized Price Distribution model. According to that analysis, XRP must first defend the area around $1.06.

If that level fails decisively, the next major support zones could emerge near $0.80, followed by $0.62 and eventually $0.51. Those levels represent areas where significant amounts of XRP previously changed hands and could attract renewed buying interest if the market weakens further.

For now, bulls have a reason to stay hopeful, but they still have work to do.

Could July Deliver Another Recovery?

Although June has been difficult, history offers a small reason for optimism.

Over the past six years, July has consistently delivered positive monthly returns for XRP. All but one of those years produced double-digit gains, with especially strong rallies occurring in both 2020 and 2023.

Interestingly, many of those recoveries came immediately after weak performances in June.

Of course, historical trends are never guarantees. Market conditions, macroeconomic uncertainty, and overall crypto sentiment will continue playing major roles in determining XRP’s direction.

Still, with technical reversal signals beginning to appear and July historically favoring the asset, traders may be watching the coming weeks more closely than usual.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.

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