XRP's Brief Rally Above $3 May Soon Reverse to $1.9, Analyst Warns

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Alexey Bondarev2 minutes ago
XRP's Brief Rally Above $3 May Soon Reverse to $1.9, Analyst Warns

XRP pushed past the $3 threshold in the past 24 hours, but the advance remains tentative without a confirmed weekly close above that level. The cryptocurrency continues to trade within a descending channel on weekly charts, and one technical analyst has outlined a bearish scenario that could push prices down to $1.9 if current support structures fail.


What to Know:

  • XRP broke above $3 but has not confirmed the move with a weekly close, remaining trapped in a descending channel since December
  • Analyst CoinsKid warns that losing the bull market support band could trigger a drop to $1.9, erasing recent bullish momentum
  • Critical support levels at $2.20 and $1.90 will determine whether XRP maintains its structure or enters a deeper correction

Bearish Scenario Takes Shape

While recent weeks have seen numerous bullish forecasts for XRP, crypto analyst CoinsKid has raised concerns about the token's vulnerability if it fails to hold above critical support levels. The analyst shared his assessment on X, formerly Twitter, with a chart illustrating the potential downside.

CoinsKid said XRP has been trading sideways since December but has found stability along the bull market support band. He described the current moment as the last bullish case for the cryptocurrency.

"Lose the BMS and the bullish support at $1.90 and XRP could be in free fall," he wrote.

He added that he remains cautiously bullish for now, though the caution stems from the visible threat of losing these levels.

The weekly candlestick chart shows XRP sitting inside a descending channel. The last three weekly candlesticks closed in the red after the cryptocurrency was rejected at the upper trendline of this channel in September. The bearish scenario assumes XRP will extend this rejection and fall to the lower trendline of the descending channel, currently around $2.2.

A break below that line would signal that selling pressure has overtaken the support structure. The next major support level sits at $1.90, which aligns with a bullish support zone from an order block formed in June.

Critical Levels and Market Structure

The $2.20 and $1.90 price levels represent the most important zones on the weekly chart. Holding above $2.20 could allow XRP to maintain its bullish structure over the longer term, according to the analysis. Closer short-term support levels are at $2.8 and $2.72, and holding above these levels would set up XRP for another attempt at breaking above the descending channel.

XRP has held above $2.8 in recent days. Buying pressure allowed the cryptocurrency to push past $2.9 and $3.0 in the past 48 hours, reaching an intraday high of $3.10. At press time, XRP was trading at $3.05.

Understanding the Technical Terms

A descending channel is a chart pattern where price action moves between two downward-sloping parallel lines, indicating a bearish trend. The bull market support band refers to a zone formed by moving averages that historically has provided support during uptrends. An order block is a price zone where large institutional orders were placed, often acting as support or resistance in future price action.

Breaking through these technical levels can signal shifts in market sentiment and trigger cascading sell orders. Weekly closes carry more weight than intraday moves because they confirm sustained price action rather than temporary spikes.

Final Thoughts

CoinsKid's chart also leaves room for optimism. A bullish projection shows a scenario where XRP breaks through the channel's upper trendline and rallies above $4. The coming days will reveal whether XRP can secure a weekly close above $3 and invalidate the bearish scenario, or whether the cryptocurrency will test lower support levels as the analyst warned.

The cryptocurrency market remains sensitive to both technical patterns and broader market conditions. XRP's ability to hold current levels will depend on sustained buying interest and the broader sentiment in digital asset markets.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
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XRP's Brief Rally Above $3 May Soon Reverse to $1.9, Analyst Warns | Yellow.com