XRP at a Breaking Point: Dead Cat Bounce or Trend Reversal?
XRP is once again dividing the market. Some traders are calling this a “deep value zone,” while others warn that the recent bounce is nothing more than a dead cat bounce inside a broader downtrend. The chart suggests that one side is about to be proven wrong — and soon.
XRP has been rejected from its moving averages and slipped below the $1.77 level, confirming that bears remain firmly in control for now. The failure to reclaim the EMA and SMA indicates persistent selling pressure, with momentum still tilted to the downside.
Key Support Under Threat
The $1.61 zone is now the most critical level to watch. This area has acted as a structural support in recent weeks.
A clean break below $1.61 would increase the probability of a deeper move toward the lower boundary of the descending channel, signaling trend continuation.
If selling accelerates, downside expansion could unfold quickly as stops are triggered.
Bullish Relief Scenario
If XRP manages to bounce from $1.61, a short-term relief rally is possible. However, bulls will likely face strong selling pressure at the moving averages again. Only a decisive break above them would open the door for a move toward the descending trendline.
A daily close above the downtrend line would be the first real signal that bulls are regaining control and that a trend shift may be underway.
Trade Scenarios (Risk-Managed)
🔻 Sell Setup (Trend Continuation)
Entry: Below $1.60
Take Profit: $1.45 – $1.40
Stop Loss: $1.68
🔺 Buy Setup (Reversal Play)
Entry: Bounce from $1.61–$1.63
Take Profit: $1.85 → $2.05
Stop Loss: $1.55
⚠️ Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always manage risk and do your own research.
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