The XRP price is showing signs of a potential major reversal after forming a rounded bottom pattern within a descending channel. This technical development comes amid significant market volatility that has seen XRP lose nearly 50% of its value between late 2024 and early 2025. Recent data showing XRP’s realized cap plunging 50% adds crucial context to this price action.
Technical Analysis Reveals Promising Formation
A prominent crypto analyst on X (formerly Twitter) has identified a significant technical pattern that could signal an end to XRP’s recent downtrend. The cryptocurrency is currently trading within a descending channel, typically considered a bearish formation. However, the emergence of a rounded bottom pattern within this channel suggests a potential trend reversal.
Key Support and Resistance Levels
The analysis highlights several critical price levels:
- Current support: $1.60
- Optimal entry zone: $1.70-$1.85
- Initial resistance: $2.00-$2.20
- Target levels: $2.3385, $2.8160, and $3.3062
Potential Risks and Bearish Scenario
While the overall outlook appears bullish, investors should remain cautious of potential downside risks. Recent market turbulence has already pushed XRP below the $2 mark, highlighting the importance of proper risk management. The critical support at $1.60 must hold to prevent a deeper correction toward $1.30.
FAQ Section
What is a rounded bottom pattern?
A rounded bottom pattern is a technical chart formation that signals a potential trend reversal from bearish to bullish, characterized by a U-shaped price movement.
What are the key resistance levels for XRP?
The main resistance levels to watch are $2.00-$2.20, followed by $2.3385, $2.8160, and $3.3062.
What could invalidate this bullish setup?
A break below the critical support level at $1.60 could invalidate the bullish scenario and potentially trigger a decline toward $1.30.