- XRP bounced off key support at $2.30, signaling a potential bullish reversal.
- Short-term charts suggest a rally could be imminent if the price holds above this level.
XRP may be gearing up for a bullish comeback after a critical rebound at the 50-day support level. Following a steep drop from its May 12 high of $2.65, XRP found strong footing at the $2.30 horizontal support area, sparking renewed optimism among traders.
Since April 7, XRP has respected a long-term ascending support trend line. The latest bounce, recorded on May 25, not only reaffirmed this trend but also formed a bullish candlestick pattern at a confluence of technical supports — including a retest of the previous descending resistance. This price action hints that the recent correction may have bottomed out.
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However, caution remains warranted. On June 1, Ripple will unlock one billion XRP from escrow — about 2% of the circulating supply. While historically most of these tokens are re-locked, any unexpected release into the market could trigger short-term volatility or selling pressure.
On the technical front, signals are mixed. The Relative Strength Index (RSI) and MACD both suggest bearish momentum remains in play, potentially capping upside moves in the immediate term. To confirm a bullish trend reversal, XRP must break decisively above its recent highs near $2.65.
But zooming into the six-hour chart reveals a more optimistic scenario. According to Elliott Wave analysis, XRP appears to have completed wave two of a five-wave impulse, forming a classic W-X-Y correction structure. Wave Y aligns with the 0.618 Fibonacci ratio of wave X — a strong historical indicator of reversal zones.
Unless XRP closes below $2.30, the bulls may have the upper hand. The recent low sweep and multiple support confirmations bolster the case for a rally continuation.
With XRP sitting at a pivotal support zone and short-term charts flashing bullish cues, traders will be watching closely in the days ahead. A sustained move higher could ignite the next leg toward a fresh 2025 high — if, and only if, support holds firm.
