XRP has shown an early technical improvement after an extended period of selling pressure, as the asset recently printed its first bullish Heikin-Ashi candle on the daily chart in nearly two weeks. This development has drawn attention from market participants, as it may signal that downward momentum is beginning to weaken following a sharp correction earlier this month.
The appearance of the bullish candle follows a significant decline that saw XRP fall from a January 6 high of $2.41 to a new yearly low near $1.80 on January 25. During this period, bearish sentiment dominated price action, with sellers maintaining control across multiple sessions. However, recent trading behavior suggests that the balance between buyers and sellers may be starting to shift.
Price Stabilization Emerges After Prolonged Weakness
After reaching its recent low, XRP has posted a modest rebound, with the price recovering to approximately $1.90 at the time of writing. While this move remains limited in magnitude, it represents the first sustained attempt at stabilization following weeks of consistent losses.
Market commentator CW has pointed out that this recovery aligns with a broader set of technical signals that may indicate an early-stage trend transition rather than a short-lived bounce.
A green candlestick appeared in the $XRP Heikin-Ashi candlestick.
The trend is reversing.
Also, a golden cross on the sub-indicator is imminent. pic.twitter.com/i0r6DHEJoi
— CW (@CW8900) January 27, 2026
From January 15 through January 26, XRP recorded twelve consecutive bearish Heikin-Ashi candles, reflecting uninterrupted downside pressure. This sequence highlighted the strength of the prevailing downtrend and the absence of meaningful buyer intervention. The bullish candle printed on January 27 effectively ended this streak, marking the first visible interruption to the pattern of lower prices.
Heikin-Ashi charts, which smooth price data by averaging candle values, are often used to identify sustained directional trends. Extended runs of candles in one direction typically indicate strong momentum. As a result, the emergence of a bullish candle after nearly two weeks of consistent declines is technically notable, especially when accompanied by improving momentum indicators.
Momentum Indicators Show Signs of Improvement
Several commonly used momentum tools are beginning to reflect a shift in market dynamics. The Moving Average Convergence Divergence (MACD), which tracks changes in trend direction and strength, has remained in bearish territory since mid-January. However, recent price action has altered the relationship between its components.
The MACD line has started to turn upward while the signal line continues to slope lower, narrowing the gap between the two. If this movement continues, it could result in a bullish crossover, often interpreted as an early signal of trend reversal.
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In parallel, the Stochastic Relative Strength Index has rebounded sharply from deeply oversold conditions. After falling from elevated levels earlier in the month, the indicator dropped to approximately 2.12 on January 26.
Such readings typically occur during periods of extreme selling pressure. As XRP’s price began to recover, the Stochastic RSI climbed back toward the 20 level, suggesting that bearish momentum may be easing.
The traditional Relative Strength Index has also shown improvement. During the January decline, RSI fell from overbought territory to a low near 34.61, reflecting sustained selling activity. Since then, it has risen to around 41.04 and is approaching its moving average, currently near 42.45. A confirmed move above this level would further support the case for strengthening buyer participation.
Despite these technical developments, the broader trend has not yet been conclusively reversed. Sustained bullish Heikin-Ashi candles and confirmed indicator crossovers are still required to validate a durable shift in market direction. Without continued follow-through, the current recovery could fail, leaving XRP vulnerable to renewed selling pressure.
For now, the data suggests that XRP may be entering a stabilization phase following its recent decline.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers should conduct in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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