 ▲ XRP / AI-generated image |
XRP has broken through the 26-day Exponential Moving Average (EMA), a key indicator of a short-term trend reversal, after a prolonged downturn, signaling the beginning of a potential comeback.
According to cryptocurrency media outlet U.Today on February 16 (local time), XRP recently confirmed a low near $1.40 before staging a strong rebound, improving its short-term technical outlook. This marks the first meaningful recovery since the price, which traded above $2.30 at the start of the year, plunged sharply. The accompanying surge in trading volume suggests strong buying pressure stepped in near the lower boundary of the descending channel.
It is particularly encouraging that the price has settled above the 26-day EMA, a level closely watched by traders to gauge short-term momentum shifts. The selling pressure accumulated during the prolonged correction phase appears to have temporarily eased, which is interpreted as a sign that investors are preparing to re-enter the market. The improvement in technical indicators suggests weakening selling momentum and the potential for a transition toward buyer dominance.
However, breaking above the 26-day EMA does not necessarily signal a full-fledged bullish reversal, and several hurdles remain. XRP is still trading below longer-term moving averages such as the 50-day and 200-day EMAs, indicating that the broader trend remains downward. Whether this move develops into a sustained rally or fades into another period of sideways trading will depend on the defense of key support levels.
For bullish momentum to strengthen further, XRP must hold its current price range while reclaiming resistance levels near $1.75 and $1.90. To prove that buyers have fully regained control of the market, the asset needs to establish higher lows and maintain a stable upward trajectory. If the current rebound fails to sustain itself, there remains the possibility that the price could retreat to its recent support levels.
Technical analysts note that while the current movement does not yet constitute a complete bull market, it does reflect a meaningful shift in momentum. If buying pressure continues over the coming weeks, XRP may attempt a broader recovery rally. Global investors are closely watching whether this rebound, emerging from the depths of the downturn, will evolve beyond a mere technical correction into a long-term trend reversal.
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