• XRP signals a critical test as it trades in a descending triangle between $2.72 and $3.10.
• XRP price trades near $2.90 amid rising market volatility, with MACD indicating sustained pressure.
• A double bottom supports bullish hopes, despite ETF delays weighing on sentiment.

XRP is under pressure, currently trading at $2.89 with a 1.52% decline over the past week. The cryptocurrency has been forming lower highs since July amid a rally of other cryptocurrencies such as Bitcoin and BNB, which have reached new all-time highs.

Furthermore, this pattern suggests that its bullish momentum could be weakening, as rally attempts have failed to break above the $3 resistance level.

XRP Under Pressure as Long-Term Setup Signals Hope

The MACD histogram shows weak momentum, with the line near zero and slightly negative bars, indicating a slight bearish bias. The short-term outlook remains cautious, as sellers still have a slight advantage over buyers who haven’t yet regained control. In addition, trading volume spikes are concentrated around the late-September and early August sell-off.

At the same time, technical analyst Amonyx has taken a long-term perspective and identified a potential double bottom pattern that can support the continuation of a future bullish cycle if XRP is able to hold above $2.80 or $2.70. His chart shows $2.40 as the neckline price with $3.19 as the breakout point. 

The year-end targets are projected to be between $20 and $30, based on historical market cycle analogs from 2014 to 2017. While there is still considerable weakness in the short term, this structural outlook suggests that if key support levels can be maintained, XRP’s bullish potential may still unfold.

Also Read: 3 Reasons Why XRP Is At a Crossroads: Can It Spark New Momentum?

Descending Triangle Structure and $2.72 Retest Outlook

According to a chart analysis cited by market analyst Ali Martinez, a descending triangle is forming on the daily chart of XRP. This follows a fall in which XRP closed at $2.8688 on October 7 and failed to hold above the $3.00 resistance range. 

This technical setup highlights a downward-trending line with lower highs and a flat horizontal bottom near the $2.72 level, which has repeatedly served as a support level since July. The base of the triangle remains intact, but the downward pressure may continue and lead to a retest of $2.72, as per the analysis by Martinez. 

Once a confirmed breakdown below this level is confirmed, additional declines towards $2.42 or $2.10 can be anticipated from a target perspective. The setup remains bearish in bias due to the downward-trending line near $2.95-$3.00. However, until XRP makes a solid move above it, the setup is slanted in a short-term, biased bearish direction.

ETF review pause and BNB rise pressure XRP market cap

The current US government shutdown has caused delays to XRP spot ETFs approvals, which have contributed to weaker investor sentiment.  The SEC’s decision review has been on hold, resulting in uncertainty around the ETF space. This is a regulatory bottleneck that is limiting short-term recovery attempts, particularly in the target of $3.10 resistance zone.

Meanwhile, XRP has fallen to become the fifth-largest cryptocurrency by market capitalization at a value of $173.2 billion. After being recently overtaken by BNB, which rose to $182.6 billion.

Despite this setback, traders are optimistic about developments surrounding GraniteShares’ 3X leveraged ETF filings, which include products for XRP, Solana, Ethereum and Bitcoin.

Given the lack of clarity in regulatory developments and the need for a clear move above $3.00, the market outlook remains tight until market optimism improves. 

The $2.72 support zone is likely to see further decision-making break or rebound, as the next big brekdown may open up $2.42. A break back above $3.10 also could mark the beginning of renewed bullish momentum.

Also Read: XRP ETF Could Lead $18 Trillion Crypto Boom, Says CoinShares CEO