XRP is struggling to hold important support amid strong selling pressure.

XRP has witnessed a sharp decline in recent price fluctuations, losing nearly 15% of its value in the past week as bears continue to dominate the market. Technical indicators are giving mixed signals: the RSI has recovered from the oversold region, but the Ichimoku Cloud pattern still shows a negative outlook.

Yesterday, XRP tested the important support level at $2.06 and bounced back, but the momentum still leans towards a downtrend, with the short-term (EMA) moving averages below the long-term ones. Although the price has exited the deeply oversold area, this may signal an accumulation phase before XRP enters another significant volatility.

The RSI of XRP rebounds from the oversold region

The Relative Strength Index (RSI) of XRP currently stands at 36.37, marking a significant recovery from a low of 27.49 just a few hours ago. This improvement reflects a shift in momentum as buying pressure begins to return after strong selling pressure.

Although the RSI is still low, this recovery momentum indicates that traders may be taking advantage of the recent dip as an opportunity.

XRP's RSI Indicator | Source: TradingViewAs a popular momentum indicator, RSI measures the speed and change of price movements on a scale from 0 to 100. When the RSI drops below 30, the asset is often considered oversold and may be undervalued. Conversely, when the RSI exceeds 70, the asset is at risk of being overbought and may be about to enter a correction.

The recovery of XRP's RSI from 27.49 to 36.37 may signal that it has just exited the oversold zone, while also indicating that the selling pressure is weakening. If the buying momentum continues to increase, XRP could enter an initial recovery phase.

XRP's Ichimoku Cloud still signals a bearish trend

The Ichimoku Cloud chart for XRP shows that the price remains below both the Kijun-sen (red) and the Tenkan-sen (blue), confirming that market momentum is still leaning towards a bearish trend.

The candles continue to form below the cloud, reflecting a broader weakening momentum. When the price is below all the main components of Ichimoku like this, selling pressure often dominates, unless there is a strong reversal that breaks through key resistance levels.

The Ichimoku Cloud indicator on the XRP/USDT 4-hour chart | Source: TradingViewNotably, the forward cloud is red, extending horizontally with a downward slope, reinforcing a negative outlook in the short term. The thickness of the cloud also indicates strong resistance if the price attempts to recover.

However, some accumulation signs are beginning to appear on recent candlesticks, indicating that the selling pressure may be gradually weakening.

To confirm a reversal, XRP needs to break above the Tenkan-sen and Kijun-sen lines, then challenge the Ichimoku cloud – a scenario that requires strong upward momentum and a clear breakout.

XRP needs to maintain important support to recover

The EMA lines of XRP are clearly aligning in a bearish structure, with the short-term moving averages positioned below the long-term ones, and the distance between them is quite large – highlighting strong downward momentum.

XRP/USDT 4-hour chart | Source: TradingViewYesterday, the price of XRP tested the support level of $2.06 and bounced back, indicating that buying pressure still exists in this area. However, this support level remains critical. If XRP tests this level again and fails to hold, the price could drop further, with the next important support level around $1.90.

If the trend begins to change and XRP moves above the short-term EMA lines, the first key resistance level to watch is $2.22. If the price successfully surpasses this level, a stronger recovery could occur, pushing the price towards $2.47.

If the upward momentum continues, the next price target will be $2.59. However, at this moment, the EMA structure still leans towards a downtrend. XRP bulls need to maintain buying pressure in order to reverse the trend and target higher resistance levels.

You can view the price of XRP here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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