XRP Bulls Trapped in Descending Channel – Can They Break Free?

XRP’s rally hits a wall as descending channel resistance tightens its grip. Traders watch for signs of bullish defiance—or another classic crypto fakeout.

Key levels to watch: If buyers can’t flip this pattern soon, we’re looking at yet another ’hold my beer’ moment for bagholders. Meanwhile, Wall Street still can’t decide if crypto is an asset class or a meme.

Bears Keep Price Below Key Resistance Line

Currently, XRP is showing signs of a potential bearish move after encountering strong resistance NEAR the upper boundary of its descending channel on the daily chart. This upper trendline has acted as a formidable barrier, halting recent bullish attempts and reinforcing the overall downtrend structure.

The rejection at this level suggests that sellers are still dominating the market. If bearish momentum builds, the altcoin could revisit lower support levels within the channel, potentially retesting the lower boundary of the descending channel.

Also, the Moving Average Convergence Divergence (MACD) indicator is approaching a potential bullish crossover. This pending cross between the MACD line and the signal line has caught the attention of traders, especially as it forms near a key technical zone. A confirmed crossover might indicate a possible trend reversal, hinting at growing bullish strength after a period of downside pressure.

However, given recent market volatility and past failed breakouts, skepticism remains. Previous attempts in similar setups have led to fakeouts, temporary moves that fizzled out quickly. As a result, confirmed price action and volume are advised before positioning too aggressively. If accompanied by a breakout from nearby resistance, this cross could mark the beginning of a stronger upward move. Otherwise, it risks becoming just another false alarm in a choppy market.

Support Zone In Focus As XRP Tests Lower Boundary

XRP finds itself at a critical juncture as it moves toward the lower boundary of its descending channel. This area has served as a reliable support level in recent weeks, preventing deeper losses and providing a foundation for minor rebounds. As price action moves toward this zone, traders are watching closely to see whether buyers can defend it once again or if the bears will force a decisive breakdown.

A sustained hold above this support zone may pave the way for a short-term bounce, targeting mid-channel resistance levels. However, a clean break below this lower boundary may ignite downside pressure, exposing XRP to fresh multi-week lows such as $0.9353. With sentiment currently fragile, this support test might be pivotal in shaping XRP’s next trend.