XRP bulls and bears face off: profit-taking stalls rally as key levels flip to resistance
The gist
Profit-taking and shifting technicals have turned XRP’s comeback into a battleground, with the $1.25 barrier holding strong as bulls and bears clash for control.
What to know
- XRP faces fierce resistance at $1.25 and $1.30, with profit-takers overpowering robust Asian demand and flipping old support into new resistance.
- On-chain data shows bearish momentum as XRP trades below key moving averages, but whale accumulation and a bullish MACD crossover spark hopes for a rebound.
- With the 50-day EMA and a death cross confirming downward pressure, failure to hold critical supports at $1.14, $1.09, and $1.07 could trigger a slide toward $0.87.
Profit-Taking vs. Asian Demand
Aggressive profit-taking at $1.25 and a flipped $1.30 resistance have trapped XRP in a tug-of-war between short-term sellers and strong regional buyers, leaving its rally on unstable ground.
XRP's price action has encountered a formidable resistance near the $1.25 mark, where intensified profit-taking has repeatedly thwarted sustained upward momentum. Despite robust demand from Asian markets fueling initial breakouts above this level, traders have cashed out aggressively, causing the price to retreat below $1.20 and underscoring the immediate challenge buyers face in consolidating gains. This dynamic reflects a market grappling with balancing strong regional interest against the natural pull of short-term profit realization.
Adding complexity to XRP's price dynamics, the $1.3 level has recently flipped from a support zone into a resistance barrier, signaling a notable shift toward increased selling pressure. This reversal has heightened bearish sentiment, with market participants now focusing on the psychological $1 threshold as the next critical support to defend. Such a transition from support to resistance at $1.3 highlights the precarious position XRP occupies, caught between seller exhaustion near $1.25 and the looming threat of further downside below $1.
Buyers Signal a Reversal Attempt
Despite bearish momentum and breakdowns below major averages, whale accumulation and a bullish MACD crossover hint at a brewing recovery as seller exhaustion takes hold near key supports.
On-chain metrics present a nuanced picture for XRP, highlighting a 50% recovery possibility despite recent bearish price action. While the broader trend remains under pressure, early signs of seller exhaustion are emerging as XRP trades near major support levels, suggesting that downward momentum may be losing steam and stabilization could be on the horizon.
Momentum indicators reveal a complex tug-of-war: XRP's breakdown below the critical $1.32 support and all major moving averages confirms strong bearish momentum, yet this decline also hints at potential seller fatigue. This mixed momentum is further complicated by bullish signals such as exchange supply draining and whale accumulation, underscoring a market caught between persistent resistance and growing buyer interest.
A bullish MACD crossover coupled with increased accumulation, as noted by analyst BATMAN, signals a potential rebound with XRP reclaiming the $1.28 level on its strongest volume since early June. This technical shift, supported by fresh buying activity, suggests that despite ongoing challenges, XRP may be poised for a meaningful recovery if these momentum trends sustain.
Bearish Breakdown Intensifies
A confirmed death cross, persistent downtrend, and mounting pressure on critical supports threaten to push XRP toward its lowest level since 2024, raising the stakes for a decisive shakeout.
XRP continues to struggle within a persistent structural downtrend that has been in place since its October 2025 peak of $3.65, with recent price action confirming a strong resistance zone near $1.28 to $1.31. This area, now reinforced by the 50-day EMA acting as a ceiling rather than support, exemplifies a clean polarity flip that traders interpret as a confirmation of bearish momentum rather than mere noise, underscoring the difficulty XRP faces in reclaiming lost ground.
Technical indicators have intensified the bearish outlook, notably with XRP confirming a death cross on the hourly chart as the 50 moving average dipped below the 200 moving average, signaling heightened selling pressure. This technical breakdown coincided with four consecutive days of declines, reflecting sustained downward momentum that amplifies downside risks and erodes short-term investor confidence.
Critical support levels at $1.14 and $1.07 now serve as key downside targets, with the latter marking the lowest price since November 2024, suggesting that failure to hold these zones could precipitate further declines. Analysts also highlight a Fibonacci support near $1.09, warning that a breakdown below this level could extend XRP’s slide toward $0.87, a potential final shakeout point before any major rebound.
Exchange flow data corroborates the bearish narrative, revealing that 53.8% of XRP movements are withdrawals compared to 46.1% deposits, a pattern often associated with ongoing selling pressure and investor capitulation. This outflow imbalance, combined with XRP’s inability to reclaim the 50-day simple moving average, paints a picture of a market still dominated by sellers despite intermittent demand, leaving downside risks firmly in place.