XRP Shows Reversal Signs with ‘Spinning Bottom’ as BTC Surpasses Key Downtrend

XRP Shows Early Signs of Rebound as Bitcoin Clears Key Trendline

XRP ($2.7952) formed a “spinning bottom” candlestick on Monday, signaling a potential pause in selling pressure and an early sign of a bullish reversal. The pattern appears when prices fluctuate widely during the day but close near the opening level, reflecting a balance between buyers and sellers.

Appearing after a 25% pullback from July’s $3.65 peak and near the August 3 support low, XRP’s spinning bottom suggests that bears may be losing momentum. While the pattern alone does not confirm a rally, a bullish close above Monday’s high of $2.84 could trigger further upside. XRP is currently trading around $2.80.

Technical Outlook

Short-term momentum remains cautious. The 5- and 10-day simple moving averages continue downward, and the Guppy multiple moving average band remains bearish. A drop below Monday’s $2.69 low could open the door for further declines.

However, XRP’s consolidation between $2.70 and $3.00 and the potential for a bullish MACD crossover indicate that a recovery could be forming, similar to the pattern bitcoin displayed when trading below $60,000 in September last year.

Key Levels

• Support: $2.69 (Monday low), $2.65 (May swing high), $2.48 (200-day SMA)
• Resistance: $2.84 (Monday high), $3.38 (August high), $3.65 (July high)

Bitcoin Update

Bitcoin has cleared a descending trendline from its $124,000 record high pullback, offering a potential bullish signal. However, the cryptocurrency remains below major resistance zones, including the Ichimoku cloud, 50- and 100-day simple moving averages, and the August 3 low. A bearish divergence in the monthly RSI signals caution, suggesting that rallies may face resistance. Sustained momentum above the Ichimoku cloud is needed to confirm a broader recovery.

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