XRP Shows Early Reversal Signs as Bitcoin Clears Key Trendline
XRP ($2.7952) formed a “spinning bottom” candlestick on Monday, signaling a potential bullish reversal. This pattern, where prices swing widely but close near the opening level, reflects indecision between buyers and sellers. When it appears after a significant pullback and at strong support—as seen with XRP—it often suggests that selling pressure is easing.
Following a 25% drop from July’s $3.65 high and hovering near the August 3 support low, XRP’s pattern indicates that buyers may be stepping in. Confirmation would require a close above Monday’s high of $2.84, with the token currently trading near $2.80.
Technical Snapshot
- 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 (5- and 10-day) are still trending downward, and the Guppy multiple moving average band remains bearish. Breaching $2.69 could trigger further declines.
- MACD: Though negative since late July, a potential bullish crossover could signal the start of a sharper rebound.
Bitcoin Update
Bitcoin recently surpassed a descending trendline from its $124,000 all-time high, providing an early bullish signal. However, key resistance levels, including the Ichimoku cloud, 50- and 100-day SMAs, and the August 3 low, continue to cap gains. A bearish divergence on the monthly RSI indicates that upward moves may face selling pressure. To confirm a broader recovery, BTC must break and hold above the Ichimoku cloud.
