XRP’s Candlestick Pattern Suggests Recovery, While BTC Breaches Descending Resistance

XRP Signals Potential Rebound as Bitcoin Clears Key Trendline

XRP ($2.7952) displayed a “spinning bottom” candlestick on Monday, an early indicator of a possible bullish reversal. This pattern, where prices fluctuate widely but close near the opening level, reflects indecision in the market, with neither buyers nor sellers dominating.

Appearing after a 25% drop from July’s $3.65 peak and near the August 3 support low, the pattern suggests that selling pressure may be easing. Traders will look for confirmation in a close above Monday’s high of $2.84 to validate a potential recovery. XRP is currently trading near $2.80.

Technical Overview

• Momentum: Short-term averages, including the 5- and 10-day SMA, remain downward, with the Guppy multiple moving average band still bearish. A breach of Monday’s $2.69 low could signal further downside.
• MACD: The indicator shows potential for a bullish crossover, hinting at the possibility of a sharper rebound if momentum shifts.

Key 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)

Bitcoin Update

Bitcoin has broken above a descending trendline from its $124,000 all-time high pullback, a potential early bullish signal. However, it remains capped by key resistance zones, including the Ichimoku cloud, the 50- and 100-day SMAs, and the August 3 low. A bearish divergence on the monthly RSI suggests upward moves could encounter selling pressure. A sustained break above the Ichimoku cloud would be required for a broader market recovery.