XRP has climbed back above $1.40, reclaiming a level that had acted as resistance for weeks. The move comes as buyers step in after a prolonged consolidation phase, though the token's chart still holds warning signs that the bottom may not be fully in.
Buying pressure rises while price fell
Despite XRP's sharp decline from its July 2025 peak of $3.55 — a drop of more than 60% to around $1.39 — on-chain data tells a different story. The 100-day moving average of XRP's Taker Buy Sell Ratio on Binance climbed to 0.9766 as of May 3. That reading signals persistent accumulation, even as the price bled lower.
That divergence between falling price and rising buying pressure is what analysts often associate with a gradual bottoming phase. But the process is rarely clean, and XRP's chart adds a layer of caution.
Bearish pennant and hidden RSI divergence
On the daily chart, XRP is forming a bearish pennant directly on a key support level. Lower highs are compressing toward a floor, and volatility has contracted sharply — candles are tighter, wicks shorter, and volume has fallen off compared to the capitulation phase earlier this year.
The Relative Strength Index shows a hidden bearish divergence: momentum is weakening even as price stabilizes. That pattern often precedes a breakdown rather than a breakout. The analyst following the asset concludes that while on-chain data points to accumulation, the chart warns the bottoming process may not be complete.
Price continues to trade below both the descending 100-day and 200-day moving averages, which act as dynamic resistance. The risk of a long squeeze remains elevated until XRP can clear resistance with strong, confirming volume.
Key levels: $1.45–$1.50 on the upside, $1.30 on the downside
XRP is currently trading in a tight range between roughly $1.30 support and $1.45 resistance. A break above the $1.45–$1.50 zone would signal that buyers have regained control. Losing $1.30, on the other hand, would likely trigger a move toward the $1.10–$1.20 demand area.
For now, the market is watching whether the accumulation shown on Binance can translate into enough buying pressure to break the descending moving averages. If not, the bearish pennant could resolve lower, extending what has already been a brutal correction.
