XRP Near $1.90 Support: Is a Major Reversal Loading?

Key Insights:

  • XRP forms lower lows in price while RSI builds higher lows, signaling potential bullish divergence.
  • Price struggles below the 20 EMA, acting as strong resistance through multiple failed breakout attempts.
  • Traders monitor the $1.90 zone for accumulation as Stoch RSI remains in oversold territory.
XRP Near $1.90 Support: Is a Major Reversal Loading?
XRP Near $1.90 Support: Is a Major Reversal Loading?

XRP was trading near $2.00 after a 3% drop over the past 24 hours and a 6.4% decline in the last seven days. The token remains within a wide range that has been held for several months. Resistance has stayed near $3.60 to $3.80, while the $1.90 level continues to act as strong support.

The price has been making lower highs, showing steady selling pressure. But the support around $1.90 has not failed. This suggests that buyers are still active at this level. Current market conditions remain unstable following the latest FOMC meeting, with price action across several assets showing mixed behavior.

Technical Indicators Signal a Potential Setup

The Relative Strength Index (RSI) is compressing inside a downward channel and is now near 39. This level shows reduced momentum without being oversold. When RSI compresses like this, price often stays in a waiting phase. Traders are watching closely for signs of a break in either direction.

The Stochastic RSI has moved into the oversold area. A crossover is forming, which can often point to short-term price moves. This setup is appearing near a major support level, increasing interest in a possible bounce.

Daily Chart Shows Divergence Between Price and Momentum

On the daily timeframe, XRP shows a divergence between price and RSI. While the price has continued to drop, the RSI has been making higher lows. This suggests that the selling strength is slowing down, even though the price is still falling.

The 20-day exponential moving average has been a strong barrier. Each attempt to move above it has failed. Until the price closes above this average, pressure remains on the downside. “We are likely to witness retests on both the lower low and higher low trendlines as we fail to break the daily 20 EMA,” one analyst noted.

$1.90 Support Remains a Focal Point

The $1.90 level remains a critical area to watch. Some traders see further movement toward this zone as part of a shakeout that may trigger a reversal. “Any further sweeps or downside activity towards the $1.90 TR support is welcomed,” an analyst wrote, suggesting this area may offer long setups if price holds.

Source: ChartNerd/X
Source: ChartNerd/X

If the price stays above $1.90 and momentum shifts, a reversal from this zone could follow. However, any recovery will likely need a move above the 20 EMA to confirm a trend change. Until then, traders remain cautious but alert to possible changes in direction.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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