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XRP Technical Analysis: Bullish Pattern Emerges Amid Market Weakness

XRP has remained under notable technical pressure in recent weeks, reflecting broader weakness across the digital asset market. Since early October, declining investor sentiment and macroeconomic uncertainty have weighed heavily on cryptocurrencies, with the total market capitalization falling by more than $1.3 trillion during this period. 

XRP has followed this trend, giving up tens of billions of dollars in market value as selling pressure intensified.

After managing to stay above the psychologically important $2 level for much of the decline, XRP eventually slipped below that support in mid-December. The loss of this level accelerated downside movement and reinforced bearish sentiment. 

Despite this, some market analysts argue that the current structure does not necessarily signal long-term weakness. Instead, they believe XRP may be entering a phase that has historically preceded strong recoveries.

XRP’s Position Relative to the 50-Week Moving Average

According to market analyst Steph, XRP’s recent behavior around the 50-week simple moving average (SMA) deserves close attention. This indicator is widely used to assess long-term market trends. XRP has now spent several consecutive weeks trading below this level, a condition that typically reflects sustained selling pressure.

However, historical chart data suggests that extended periods beneath the 50-week SMA have often been followed by sharp upward moves. Steph’s analysis indicates that XRP has previously remained below this moving average for periods ranging from roughly 50 to 84 days before staging notable recoveries. 

These past instances form the basis of current speculation that XRP may again be approaching a turning point.

Historical Precedents Since 2018

Weekly price data shows that this setup has appeared multiple times over the past several years. Following XRP’s major decline from its early 2018 peak, the asset spent several weeks trading below the 50-week SMA during the middle of that year. After establishing a low during that period, XRP later recorded a substantial rebound within a few months.

A comparable pattern emerged again toward the end of 2021. XRP dropped below the same long-term average and remained there for several weeks before recovering in early 2022. While the resulting price increase was more modest than in 2018, it still represented a meaningful recovery from the local low.

More recently, a similar structure was developed in 2024. XRP fell below the 50-week SMA and stayed under it for nearly three months. When prices eventually recovered, the rally that followed was significantly stronger than previous instances, pushing XRP to new cycle highs. This episode has become a key reference point for analysts assessing the current market phase.

Assessing the Current Setup

As of now, XRP has been trading below the 50-week SMA for approximately 10 consecutive weekly candles, equating to just over two months. If the duration aligns with prior cases, analysts suggest the asset could remain under pressure for several more weeks before a clearer trend reversal emerges. 

Some projections estimate that matching the longest historical duration would extend this phase toward the end of the year.

Based on prior percentage gains, speculative price targets vary widely. Analysts emphasize that these figures are theoretical and depend heavily on market conditions, liquidity, and broader investor sentiment. Even so, the repetition of similar technical structures continues to attract attention from long-term traders.

Additional technical indicators have also entered the discussion. Analyst Chart Nerd has noted that momentum tools such as the Relative Strength Index and the Moving Average Convergence Divergence suggest selling pressure may be easing. These signals are often associated with stabilization phases, though they do not guarantee immediate price appreciation.

While XRP remains under technical strain, historical data show that comparable periods of weakness have previously preceded strong recoveries. Analysts caution that past performance does not ensure future results, but the recurring interaction with the 50-week SMA remains a focal point for market participants monitoring XRP’s next major move.

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 are urged to do 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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Zaccheaus Ogunjobi
Zaccheaus Ogunjobi
I am a passionate and experienced writer with a strong focus on cryptocurrency and the financial landscape. With a keen eye for market trends and emerging financial technologies, I strive to deliver insightful, well-researched content that educates and informs. Whether breaking down complex financial concepts or analyzing the latest market movements, my goal is to make finance accessible and engaging for a wide audience.
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