XRP Price Bounces at 50-Day Support — Setup Hints at Bullish Trend Reversal
Key Takeaways
- XRP is following a long-term ascending support trend line.
- The token recently bounced at the $2.30 horizontal support area.
- Can XRP sustain its momentum and rally to new highs?
XRP has been on a downward spiral since hitting $2.65 on May 12, but the bulls stepped in on May 25, sparking a solid bounce from key support zones.
Still, that recovery may face a fresh test soon.
On June 1, Ripple is set to unlock one billion XRP from escrow, roughly 2% of the token’s circulating supply.
While much of it is typically re-locked, the scheduled release could introduce short-term selling pressure.
With XRP at a critical juncture, it’s worth examining the charts more closely to see whether this unlock might disrupt the rebound.
XRP Price Bounces
On the daily chart, XRP has been climbing along an ascending support trend line since April 7.
The price saw a key bounce on May 7, breaking through the $2.30 horizontal resistance and a descending trend line (dashed), signaling bullish momentum at the time.
But after reaching a high on May 12, XRP reversed course.
It has since returned to retest the $2.30 level and the ascending support, forming a bullish candlestick (green) in the process.
That bounce also tapped the old descending resistance, adding further confluence that this area could mark a local bottom.
Still, the rebound hasn’t been confirmed. For a true reversal, XRP would need to reclaim its recent highs with conviction.
Technical indicators are sending mixed signals. Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are leaning bearish, suggesting momentum could still favor the bears.
At this point, XRP remains at a crossroads. A decisive move above recent highs would strengthen the bullish case, while a breakdown from the trend line could open the door to further downside.
XRP Breakout Incoming?
While the daily time frame does not offer clarity, the shorter-term six-hour chart is bullish.
According to the wave count, XRP has completed wave two of a five-wave increase (black).
The sub-wave count is in red, which shows a completed W-X-Y structure (red) with a sweep of the lows.
Wave Y is 0.618 times as long as wave X, the second most common ratio in these corrections.
The XRP price may complete another wave down toward $2.13, reaching the same length as wave W.
However, this is less likely because of the sweep of the lows and confluence of several support levels.
Rally Could Accelerate Soon
The XRP price bounced at several support levels on May 25 but has not confirmed its bullish trend reversal.
While the daily time frame does not provide clarity, the six-hour chart is bullish, especially when analyzing the wave count.
Another upward movement is likely if the XRP price does not close below the $2.30 horizontal support level.
