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Short-Term XRP Bounce Possible Despite Bearish Trends
The global cryptocurrency market has experienced another downturn, with the total market capitalization falling by 2.63% to approximately $3.65 trillion. Leading digital assets such as Bitcoin and Ethereum are showing weak momentum, with Bitcoin hovering near $107,965 and Ethereum around $3,856. This cautious sentiment is reflected across the market, where altcoins are struggling to gain traction.
The Altcoin Season Index, a measure of altcoin performance relative to Bitcoin, currently stands at a low 25 out of 100. This indicates that most recent gains are concentrated in Bitcoin, while smaller tokens have yet to show significant strength. The fading altcoin momentum adds to the overall bearish tone in the market, reinforcing investor caution.
XRP Price Performance
XRP, one of the more widely followed cryptocurrencies, is trading near $2.42, having posted a modest daily gain of 0.89%. However, the weekly chart reveals a 4% decline, underscoring persistent downward pressure. The coin’s market capitalization remains robust at about $145 billion, supported by a daily trading volume exceeding 44.6 billion USDT. Despite the slight rebound, XRP’s price is still notably below recent peak levels, which leaves its short- and medium-term outlook uncertain.
Technical Analysis: Bearish and Bullish Indicators
On the weekly chart, XRP continues to exhibit a bearish divergence that initially emerged near its all-time high of $3.40. This divergence typically signals weakening upward momentum and often precedes further downward movement, suggesting caution for market participants.
Conversely, a short-term bullish pattern has emerged on the daily timeframe. Over recent days, the Relative Strength Index (RSI) for XRP has formed higher lows, while prices have simultaneously created lower lows. This type of setup, known as a bullish divergence, often indicates a potential short-term recovery or rally. Analysts have pointed out that XRP could test resistance levels between $2.60 and $2.70 in the near future, though this zone remains a key barrier.
Key Price Levels to Monitor
For XRP to signal a more sustained upward trend, it would need to break and hold above the $2.70 resistance level. Achieving this could pave the way for further gains. Until then, the market is expected to remain cautious, with price action likely to hover in a sideways pattern.
On the downside, support is currently found near the $2.30 mark. Should this level fail to hold, XRP’s price could slide closer to the $2.00 threshold, reflecting increased selling pressure amid broader market weakness.
Market Sentiment and Outlook
Investor sentiment remains fragile as fear continues to dominate the cryptocurrency landscape. The persistent pressure across major tokens like Bitcoin and Ethereum contributes to an environment where sideways trading and volatility are more probable than strong bullish movements.
XRP’s mixed technical signals mirror this uncertainty, with no clear indication yet of a major trend reversal. Market participants are advised to watch key price points and broader market trends for stronger signals before drawing conclusions about the coin’s trajectory.
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