XRP Faces Critical Test: Recovery Ahead or Extended Bear Market?

• XRP is currently trading at around $1.35.  
• The trading volume has surged by over 62%.

As a new trading day opened, mixed signals were hovering across the crypto market. The Fear and Greed Index value is settled at 19, implying extreme fear. The dominant assets, like Bitcoin (BTC) and Ethereum (ETH), strive to recover from the recent losses. Meanwhile, Ripple’s XRP has spiked by over 0.52% in the last 24 hours. 

The asset’s price has experienced heavy volatility with the potential bears in action, and its current lowest and highest trading range falls between $1.33 and $1.37. At press time, XRP trades at $1.35, with its daily trading volume having surged by over 62.6% to $1.89 billion. Besides, the market has seen a $3.77 million liquidation of XRP. 

XRP’s four-hour timeframe is ruled by bears, and the price might slip to the key support range at around $1.32. If the downside correction intensifies, the death cross could emerge and send the price toward $1.29 or even lower. 

On the flip side, with the bulls reclaiming their lost ground, the XRP price could climb to the $1.38 level. A move toward $1.41 or above would bring in further gains. With the upside pressure strengthening, the golden cross might form.

Bearish Signals Emerge on XRP’s Technical Charts

XRP’s technical analysis reports that the Moving Average Convergence Divergence and the signal lines are positioned below the zero line. It indicates a bearish outlook. Recent price movement is lagging the broader trend. For the momentum to improve, the MACD need to move back above zero. 

XRP chart (Source: TradingView)

Significantly, the Chaikin Money Flow (CMF) indicator at -0.18 suggests strong selling pressure, with clear capital outflows. With this value, distribution is taking place, showing weak demand and cautious market sentiment. If it stays deeply negative, XRP may continue facing the downtrend. 

The daily Relative Strength Index (RSI) found at 43.76 displays weak momentum with a slight bearish sentiment. As it is below the neutral level, the selling pressure is stronger than the buying pressure, though XRP is not close to the oversold zone yet. Notably, this level reflects a consolidating market. 

Moreover, the Bull Bear Power (BBP) reading of XRP at -0.0112 signals very mild bearish dominance. The overall momentum is weak, with a balanced market impulse rather than a strong downtrend. A further deep drop into the negative territory increases the strength of the bearish momentum.

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