XRP Faces Downturn Risk Below $1 Without Key Breakout

XRP Faces Renewed Selling Pressure as Key Support Tested

XRP has encountered renewed selling pressure after failing to maintain its recent rebound, pushing the cryptocurrency back towards a critical support region. While buyers have intervened to halt the latest decline, the overall technical outlook suggests a cautious approach, with the asset trading below significant resistance levels.

The daily chart continues to depict a bearish market structure. XRP is trading within a long-term descending channel and remains below both its 100-day and 200-day moving averages. The recent rejection from the upper bounds of this channel underscores the continued dominance of sellers in the broader trend.

The demand zone between $1.02 and $1.04 has once again drawn in buyers, initiating the latest rebound. However, this recovery remains precarious as long as XRP stays below the descending trendline and the major resistance area around $1.24 to $1.28, where the moving averages also converge. A successful recapture of this zone would serve as the first significant indication of a potential shift in momentum favoring buyers.

On the downside, a breach of the $1.02 to $1.04 support level would expose the broader demand zone near $0.89, potentially extending the current bearish trend.

Short-Term Outlook

The 4-hour timeframe highlights a recent breakdown below a yellow ascending trendline, confirming a loss of short-term control by buyers after they failed to sustain a series of higher lows. This breakdown precipitated a sharp decline into the $1.02 to $1.04 demand zone, where buying interest quickly resurfaced.

The current rebound has propelled XRP back towards the $1.08 to $1.09 resistance area, a level that previously acted as support before the breakdown. This makes the current rally an important retest of former support now acting as resistance. As long as XRP remains below this zone, the recent bounce could be interpreted as a corrective recovery within the prevailing downtrend.

A rejection from the current resistance would increase the likelihood of another move towards the $1.02 to $1.04 demand zone. Conversely, a decisive reclaim of the $1.08 to $1.09 region would improve the short-term outlook and potentially pave the way for a recovery towards the larger supply zone situated between $1.16 and $1.18.