After a sharp retracement that saw XRP drop over two points, the digital asset is currently trading around $2.12. While this decline may appear discouraging at first glance, several technical factors suggest a bullish reversal may be forming. By analyzing XRP’s current setup through key technical lenses, a more optimistic outlook begins to take shape. The recent drop followed XRP’s loss of support above the 50-day and 100-day Exponential Moving Averages (EMAs)—two indicators widely used to gauge short- to medium-term trend strength. This breakdown fueled bearish sentiment and prompted concerns of deeper losses. However, this move also pushed XRP into a critical technical zone that may favor a rebound. 200-Day Moving Average as Dynamic Support XRP has now settled on its 200-day Moving Average , a historically significant level that often acts as dynamic support in trending markets. This moving average has served as a launching pad for numerous recovery rallies across various digital assets. Its current role as a support base reinforces the idea that XRP is undergoing a strategic retest rather than a full-blown collapse. RSI and Volume Support a Potential Reversal Momentum indicators are offering early signs of a recovery. The Relative Strength Index (RSI) for XRP sits slightly above 45—not yet oversold, but nearing a range that typically precedes price bounces. Additionally, the increased selling volume accompanying the drop may point to capitulation, often a precursor to a shift in market direction. A rise in buying interest from this point would add credibility to the rebound narrative. Descending Triangle Nearing Resolution Zooming out reveals that XRP has been tracing a descending triangle pattern over several months—a structure often linked to consolidation phases ahead of strong directional moves. The current price behavior suggests a retest of the lower support trendline of this triangle, which also overlaps with the 200 EMA. This convergence adds weight to the possibility of a breakout, especially if bulls manage to hold the line. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Key Levels to Watch Traders should closely observe XRP’s behavior around the $2.09 and $2.20 levels. The former acts as the immediate support line, while the latter could signal renewed bullish interest if reclaimed. A decisive move above $2.26 may confirm the beginning of an upward surge toward the $2.45–$2.60 range. These resistance points will be critical in determining whether XRP transitions from consolidation into a new bullish phase. Possibility of a Bear Trap Investors must also consider the risk of a bear trap—a deceptive dip designed to shake out weak hands before a sharp reversal. The structure and volume around the 200 EMA suggest that the current move could be just that. A quick reclaim of higher levels, especially on strong volume and daily closes above $2, would provide further confirmation of this thesis. A Rebound May Be in Motion Despite the short-term drop, XRP’s technical posture shows signs of strength beneath the surface. The combination of dynamic long-term support, constructive volume patterns, and nearing triangle resolution paints a picture of potential recovery. As long as broader market sentiment remains steady and XRP continues to defend key levels, this correction could prove to be a setup for the next bullish leg. For investors, the current zone offers both caution and opportunity, a pivotal moment that could redefine XRP’s short-term trajectory. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post XRP Can Lift Off From This Position Despite Price Dip appeared first on Times Tabloid .
