XRP is currently trading at $1.89 with 1.10% increase in the last 24 hours, regaining slight momentum, as it moves towards the $2.00 mark. The rebound has revived bullish interest, but it has also raised an important question for traders: is this the beginning of a sustained reversal, or a temporary bounce within a larger consolidation?
XRP is closing in on resistance at $1.90. The Relative Strength Index (RSI) has increased to 42.41 on the daily chart, backing the short-term bullish outlook. The RSI needs to surpass the midline for the market trend to shift from bearish to bullish.
The 50-day Exponential Moving Average (EMA) limits price movement to $2.03, the 100-day to $2.16 and the 200-day to $2.29.
The market will begin its next recovery phase toward $2.50 after it establishes itself above this resistance level.
The Moving Average Convergence Divergence (MACD) indicator is below the signal line while histogram bars extend their downward movement underneath the zero line, which strengthens the prevailing bearish market trend.
Investors will start selling their assets if the current market rebound shows any signs of weakness. The next key support level is at $1.61.
Also Read: XRP Near Key Support as Japan Moves to Classify Token Under FIEA Law
The percentage of XRP held in profit fell to 50.4%, from 77.2% on January 5 and 80.4% on November 10.
Such a decline suggests sentiment is weakening. In other words, investors prefer to reduce exposure at the first sign of profit, adding to selling pressure.
On the other side, this could signal an upward reset, as the percentage of investors in profit is narrowing, reducing the available supply for sale.
The XRP Ledger (XRPL) active address decreased by 3%, which brought the total to 45,000 active addresses on Sunday from 51,600 on January 5.
On-chain activity shows a decline, leading to reduced user engagement that decreases demand for XRP, leaving its price vulnerable to supply increases and risk-off sentiment.
The technical outlook will change if a daily close above $2.00 with rising volume happens. If this occurs, the price targets will be between $2.15 and $2.20, followed by potential price movements that extend to $2.35.
On the downside, failure to break above the resistance could drag the index to $1.88. A deeper rejection may expose $1.80 and $1.75.
XRP’s push toward $2.00 is a pivotal moment. The setup is improving, but confirmation is still lacking. Until the market proves it can sustain strength above this level, the move remains vulnerable to being labeled another bull trap rather than a true trend reversal.