XRP continues to trade within a well-defined descending triangle pattern, with price currently hovering around $2.18965 as the cryptocurrency faces mounting pressure from the declining upper trend line.
The formation, which has been developing since the January highs near $3.00, suggests that selling pressure is gradually intensifying while buyers struggle to defend higher ground.
The descending triangle is characterized by a series of lower highs connected by the downward-sloping resistance line, while horizontal support around the $1.95252 level has held firm through multiple tests.
This pattern typically resolves with a breakdown below support, potentially targeting a measured move equal to the triangle’s height, which could take XRP toward the $1.00-$1.20 range.
However, price action near the triangle’s apex is becoming increasingly compressed, indicating that a decisive breakout in either direction may be imminent.
The current positioning just above the midpoint of the formation around the key $2.00 major psychological level suggests that XRP is at a critical juncture where either bears will succeed in pushing price below support, or bulls will mount a defense that could lead to an upside surprise.
Bearish Moving Average Bias
The moving average structure continues to paint a concerning picture for XRP bulls, with both the shorter-term blue and longer-term red moving averages trending downward throughout the consolidation phase. Price action has consistently remained below these dynamic resistance levels, reinforcing the notion that the path of least resistance remains to the downside.
It’s also worth noting that the 100 SMA has just crossed below the 200 SMA in a death cross, hinting that momentum is slowly shifting in favor of sellers. Any meaningful recovery attempt would need to see XRP reclaim these moving averages as support, which would represent a significant shift in the current technical narrative.
The declining 200-period moving average serves as an additional layer of dynamic resistance, and its downward slope confirms that the longer-term trend remains firmly bearish. For bulls to gain any meaningful traction, XRP would need to break above this key level and hold it as support on any subsequent pullbacks.
Oversold Conditions
The MACD indicator has been trading in negative territory for an extended period, with the histogram showing persistent bearish momentum throughout the triangle formation. However, recent readings suggest that the rate of decline may be slowing, which could indicate that selling pressure is beginning to exhaust itself at current levels.
More encouragingly for potential buyers, the stochastic oscillator has been cycling through oversold territory repeatedly over the past several months, creating multiple instances where short-term bounces have emerged from extremely oversold readings. The current stochastic level suggests that XRP may be approaching another potential inflection point where oversold conditions could spark a relief rally.
A sustained bounce off the key $2.00 psychological level could be followed by another upside breakout attempt, although holding as resistance could send XRP lower to the triangle bottom or in for a breakdown.
