XRP has recently formed a “spinning bottom” candlestick pattern, indicating a period of price consolidation after a notable decline. Closing at $2.83 on Monday, this pattern suggests that both buyers and sellers have been actively trading, yet neither side has managed to assert dominance. This formation comes after a significant 25% drop from XRP’s July peak of $3.65, landing near a key support level that previously prompted market rebounds around the August 3 low.
While the appearance of this spinning bottom does not guarantee an immediate bullish reversal, it does signal a potential shift in market dynamics, especially if confirmed by subsequent price action. Traders are closely monitoring the level of $2.84 as a crucial resistance point, with XRP currently trading at approximately $2.80.
However, the overall technical landscape presents a mixed picture. The 5- and 10-day simple moving averages continue to decline, reflecting persistent bearish momentum. Additionally, a bearish trend has been established in the Guppy multiple moving average band, indicating that selling pressure remains substantial. If XRP falls below the Monday low of $2.69, analysts caution that a more significant decline could ensue.
On the positive side, the MACD histogram, which tracks momentum, has remained negative since late July without causing a pronounced price drop. XRP has demonstrated relative price stability, fluctuating in the range of $2.70 to $3.00. A potential bullish crossover in the MACD could signal a sharp rally, drawing parallels to Bitcoin’s performance in September of the previous year when it traded below $60,000.
Support levels for XRP are currently identified at $2.69 (the low from Monday), $2.65 (the swing high from May), and $2.48 (the 200-day SMA). Resistance levels to watch include $2.84 (Monday’s high), $3.38 (the August high), and $3.65 (the July high).
In contrast, Bitcoin has recently surged past a descending trendline that marks its retreat from record highs exceeding $124,000. Despite this upward movement, the short-term outlook for Bitcoin remains bearish as it struggles to rise above key resistance levels, including the Ichimoku cloud and the 50- and 100-day simple moving averages. Additionally, a bearish divergence is noted in the RSI on the monthly chart, indicating potential selling pressure ahead.
For Bitcoin specifically, support levels are found at $107,286 (Monday’s low), $100,000, and $98,330 (the swing low from June 22). Resistance levels to monitor include $110,756 (the Ichimoku cloud), $111,728 (the 100-day SMA), and $115,780 (the 50-day SMA). The market’s current sentiment appears cautious as traders await further developments before committing to major positions.
