XRP is exhibiting signs of a potential short-term reversal as recent market activity suggests a resurgence of bullish momentum following a recent pullback. This optimism is largely fueled by the TD Sequential indicator—a technical analysis tool that identifies trend exhaustion and reversal points—after it flashed a new buy signal.
Cryptocurrency trading expert Ali Martinez noted in a post that the indicator had previously issued a sell signal when XRP reached a local peak of approximately $1.46 on May 6. This sell signal was followed by a correction of about 5.5% within the next two days, reinforcing the credibility of the indicator among traders who closely monitor its history during XRP’s fluctuations.
As XRP stabilizes after a series of declining four-hour candles, the fresh buy signal indicates that selling pressure may be diminishing, potentially ushering in another upward move. Indicators also suggest a weakening of downside momentum, characterized by smaller and more compressed recent price candles as XRP finds support at short-term levels.
Traders are particularly focused on whether XRP can reclaim the significant resistance level of $1.45, which corresponds to its previous local high. A breakout above this resistance could set the stage for a more substantial rally, with some analysts eyeing a target of $1.80 where selling pressure may intensify.
The revived bullish sentiment has led to speculation about a broader upward trajectory toward the crucial $3 level. However, analysts caution that XRP must navigate multiple resistance zones and demonstrate stronger trading volume across longer time frames to achieve this target.
In contrast, pseudonymous crypto analyst Mikkybull has introduced a more ambitious outlook, suggesting that XRP is currently trading near a crucial technical support level that has historically been a precursor to significant rallies. He posits that XRP could aim for $12 if it follows the patterns established in past recovery phases.
The analysis indicates that XRP is retesting the lower boundary of a long-term ascending parallel channel after retreating from highs near $3.50. Historical data shows that previous retests at this boundary led to notable breakouts, including a rapid 580% rally in late 2024, as well as an astonishing 65,900% surge during the 2017 bull cycle.
Moreover, the relative strength index (RSI) for XRP is nearing the 40 mark, an area known for signifying major reversal points. Mikkybull believes that a rebound from current levels could propel XRP toward the upper limit of the channel, with the ambitious target of $12 in sight.
At the time of reporting, XRP was trading at approximately $1.42, having gained 2% in the last 24 hours, while the asset saw a modest increase of 2.5% on a weekly basis.
