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XRP is trading close to $1.31 after a daily gain, and this is the first sign of buyer strength the market has shown since September. The token fell for most of October, dropping from the $1.55 region to a low close to $1.25. Now it has printed a green daily candle and is moving back up.
Recovery is bullish on its own
The bounce is small, but it matters. For weeks, every attempt to rise was sold quickly. Red candles ruled the chart, and the price kept making lower highs. A green close after the sharp drop indicates that sellers are slowing down at this level.
The $1.25 to $1.30 area is acting as support. XRP touched this region and quickly moved away from it, leaving an extended lower wick on the candle. That wick indicates buyers stepped in and absorbed the selling. Earlier in September, the same area held the price before a strong rally to $1.65.
First resistance on the way up
The next test is resistance. The orange moving average sits close to $1.33, just above the current price. XRP needs to close above it to confirm the bounce has real strength. Above that, the blue and black lines cluster around $1.37 to $1.38. This is a strong resistance region where many moving averages meet, and the price did not hold above it during the last drop.
The RSI is close to 40, which is a weak but not oversold reading. This means the bounce is not coming from an extreme low, and there is room to grow if buyers maintain control. Volume is still low, though. A real recovery needs more volume on green days.
For bulls, the primary target is a daily close above $1.33. After that, the path opens toward $1.38 and then $1.45. If XRP loses $1.25, the bounce fails, and the price could move toward $1.20 or lower.
For now, the trend is still down, but the first bullish signal in weeks has appeared. The next couple of daily candles will show whether this is a real reversal or merely a brief pause before another drop.
Arman Shirinyan
Dan Burgin
