 ▲ XRP / ChatGPT-generated image |
XRP is signaling a strong rebound at the end of a long-term descending channel and is on the verge of breaking through a key price level to completely invalidate its bearish structure.
According to crypto media outlet CryptoPotato on March 5, cryptocurrency analyst EGRAG CRYPTO stated that XRP is currently testing both the 200-day exponential moving average and the $1.55 resistance level simultaneously. XRP has remained trapped in a descending channel for the past several months, continuing its corrective phase. Whether it can break this resistance will likely determine a short-term bullish reversal. EGRAG projected that if XRP forms a weekly close above $1.55, the prevailing downtrend would weaken significantly.
The decisive level to completely invalidate XRP’s current bearish structure has been identified as $2.20. EGRAG explained that a weekly close above $2.20 would mark an official breakout from the descending channel that has persisted for months. In this scenario, the price could rapidly surge past $2.70 and extend toward $3.60 in a broad rally. If a structural reversal is confirmed, a surge in buying pressure could flow into the market, allowing XRP to regain market leadership.
Another crypto analyst, Dark Defender, also emphasized that XRP must surpass the key resistance level of $1.88 to reverse its current bearish trend. According to Dark Defender, securing a position above this range could establish the technical foundation for a long-term rise beyond $5.85 and potentially up to $18.22. The market is currently witnessing intense battles between buyers and sellers around the critical price levels highlighted by major analysts.
However, if XRP fails to reclaim $1.55, it risks renewed downside pressure. EGRAG suggested $1.26 as a short-term support level and did not rule out the possibility of a retreat to the broader macro support zone between $0.85 and $0.95 if market fear intensifies. The probability of a further downside breakdown is estimated at 35% to 45%, while the likelihood of additional declines followed by bottom formation stands at 55% to 65%.
Derivatives market indicators also support the possibility of a structural market shift. Recently, XRP’s open interest has declined by approximately 70% compared to last October, shrinking to around $203 million. This suggests that excessive leverage in the market has largely been flushed out. Historically, such contractions in open interest often occur during bottoming phases that precede strong price rebounds. The market is currently in a waiting phase, as speculative capital exits and is gradually replaced by genuine demand seeking to establish new upward momentum.
XRP now stands before two major barriers at $1.55 and $2.20. A breakout above $2.20 would mark the end of the prolonged downtrend that has persisted since the second half of 2025. Analysts are closely monitoring price volatility and accompanying trading volume to determine the direction of the next major move.
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