XRP Technical Setup Signals Potential Bullish Reversal as MACD Crosses and RSI Nears Oversold
XRP is showing technical signs that a bullish trend reversal may be imminent. Daily charts indicate XRP is testing a descending resistance line in place since August 2025 while the MACD has produced a bullish crossover and the RSI sits near 37, suggesting oversold conditions. Analysts on social media compared the setup to a 2022 pattern that preceded a 150% rally from $0.30 to $0.80. Market context cited includes XRP’s resilience during Q4 2025 selloffs and ongoing institutional demand related to On-Demand Liquidity (ODL) and cross-border settlement, which may provide a structural floor. Traders are advised to watch for a confirmed break above the descending trendline, rising volume, and sustained MACD/RSI confirmation; these factors would increase the probability of a sharp rebound into 2026. The article stresses volatility remains and is not financial advice.
Bullish
The article’s indicators point to a higher probability of a bullish reversal rather than continuation. Key technical signals — MACD bullish crossover and RSI near oversold — commonly precede bounces after prolonged downtrends. The asset is testing a long-term descending trendline that has previously acted as resistance; a confirmed break above that line coupled with rising volume would be a classic reversal confirmation used by traders. Historical precedent cited (2022 breakout and subsequent 150% rally) supports the narrative that similar setups can precede substantial moves, though history is not deterministic. Institutional use cases (ODL/cross-border settlement) provide a demand-side floor that can amplify buying when prices reach key supports. Short-term implications: elevated volatility with potential rapid long trades on a confirmed breakout; watch for false breakouts and manage risk with stops. Long-term implications: if momentum and volume confirm, trend change could attract further accumulation and repositioning by institutions, supporting a sustained uptrend. Overall, technical triggers plus fundamental demand skew the expected impact bullish, but traders should remain cautious due to macro volatility and the usual risk of failed breakouts.