Recent market action around XRP is starting to shift again after a short-lived recovery attempt. According to analyst CasiTrades, the asset has now slipped below a consolidation trendline that had been holding for weeks. 

This same level is beginning to act as resistance, a sign that sellers are regaining control. This weakness is evident in the bigger chart. 

We can see that the price had a good move up initially, but then it failed to move up to a significant resistance area. After that, we have a steady downtrend with lower highs.

The price movement is still being held back by a downtrend line; therefore, we still have a downtrend in the price. Even though we have seen a bounce after the recent low, we should understand that this is a weak bounce.

It doesn’t appear to be a change in the price’s direction; rather, it is a reactive move. The price is still below significant resistance areas.

Source: X

Also Read: XRP Surge Near $1.50 Breakout Targets $1.80 Rally

ABC Pattern Points to Temporary Upside

XRP is currently experiencing a normal ABC correction. It was trending downward, hit a local bottom, and started moving up in wave A, followed by a drop in wave B, and now it is moving up again in wave C.

The last move might take XRP up to $1.51-$1.54, but $1.40-$1.41 is a major checkpoint. The levels are also a normal “old support, new resistance” scenario. The asset is unlikely to go much higher.

Its momentum is weak, and it is facing significant resistance, so it is likely to attract more sellers. The RSI is moving up but is neutral, showing no clear direction. If it breaks, it might fall again, targeting $0.87.

Unusual XRP Behavior Raises Questions

XRP continues to behave unlike most other cryptocurrencies. Another market expert, Xaif Crypto, also observed a strange phenomenon with respect to exchange reserve balances.

Typically, if exchange balances are going down, that’s a good sign for the price because investors are moving their coins off exchanges, and supply pressure is going down.

XRP behaves the opposite: its balances tend to go up during price rallies and down during price declines. 

Data also shows that before a significant price increase, the amount of money entering and leaving exchanges increases significantly, with more entering than leaving.

This shows that more tokens are entering the market as prices increase, which goes against conventional supply and demand theories, suggesting that XRP might be controlled by some form of coordinated liquidity actions, not normal buying and holding by individuals. 

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.

Also Read: XRP Jumps 6% but Faces Massive Key Risks