XRP faces a major downward trend after it hit $2.65 on 12 May. However, the bulls took charge on 25 May, sparking a massive bounce from the main support zones. This recovery is facing a fresh test in the market.
On 1 June, Ripple will siphon 1 billion XRP tokens from escrow. This is around 2% of the bet tokens in circulation. However, the majority of the tokens will be re-locked by default. Yet the scheduled release might bring short-term selling pressure.
XRP price faces a Bounce
The daily chart shows that XRP has been climbing a support trend since April 7th. On May 7th, the price got a new bounce—finally, the resistance level of $2.30 broke, signposting a gradual rise in momentum. The price rose further until 12th May. After that, the reverse course started.
The price reverted to the retest level of $2.30 ans crawled back to the same ascending support. Now, another bullish candlestick is being formed.
Strangely, the bounce has also triggered the existing descending resistance. Hence, there is a confluence area in the technical charts now. This confluence is forming a local bottom in the charts again after March 2025.
The rebound is still not confirmed. If a true reversal is to happen, XRP would need to reclaim the recent highs, with stability!
