XRP Shows Signs of Short-Term Recovery Amid Declining Volume and Persistent Death Cross

• XRP has shown signs of a modest rebound, climbing from $2.15 to over $2.17 within the last 24 hours, signaling tentative recovery amid ongoing market challenges.

• Despite the price uptick, XRP’s trading volume has sharply declined by nearly 50%, indicating that the recent price movement may lack strong market conviction.

• According to COINOTAG analysis, the persistence of the death cross pattern continues to weigh heavily on XRP’s short-term outlook, suggesting cautious investor sentiment.

XRP’s recent price rebound faces volume headwinds and a bearish death cross, highlighting critical resistance levels and bullish community sentiment for a potential breakout.

XRP’s Volume Decline Challenges Price Momentum Amid Death Cross Pressure

Recent data from CoinMarketCap reveals a significant contraction in XRP’s trading volume, which has plummeted by 49.55% to approximately $1.74 billion. This steep decline in liquidity raises concerns about the sustainability of XRP’s modest price gains. While the token experienced a 1.58% increase, the lack of corresponding volume suggests that this movement may be speculative rather than driven by fundamental buying interest.

The technical landscape remains dominated by the death cross—a bearish indicator formed when the short-term moving average crosses below the long-term moving average. This pattern, confirmed in late May 2025, often signals weakening momentum and potential downward pressure. XRP’s inability to decisively break above key resistance levels at $2.40 and $2.50 further compounds the bearish outlook, keeping the asset constrained below $2.30 for several weeks.

Technical Indicators and Resistance Levels Define XRP’s Short-Term Trajectory

Chart analysis underscores the critical importance of XRP surpassing the $2.20 resistance zone to maintain upward momentum. Failure to do so could result in renewed declines below the psychologically significant $2.00 mark. The current trading price near $2.18 reflects a delicate balance between cautious optimism and technical resistance.

Breaking and sustaining above $2.50 would be a pivotal development, potentially invalidating the death cross and signaling a shift in market dynamics. Such a breakout could attract renewed investor interest and improve liquidity, which has been notably absent during the recent price recovery.

Community Optimism Fuels Bullish Sentiment Despite Technical Challenges

Market sentiment within the XRP community remains predominantly bullish, with many investors drawing parallels to the token’s historic 2017 rally. Enthusiasts argue that XRP is currently in a consolidation phase, setting the stage for a potential major breakout in the coming weeks.

Veteran traders anticipate that if XRP can establish stability above the $2.50 threshold, it may trigger a significant upward movement within the next three to four weeks. This outlook is contingent upon overcoming current resistance levels and reversing the bearish technical indicators that have dominated recent price action.

Investor focus is now on XRP’s ability to maintain gains above $2.20 and build momentum toward higher price targets. The coming weeks will be critical in determining whether XRP can transition from a period of consolidation to renewed bullish expansion.

Conclusion

XRP’s recent price rebound is tempered by a sharp decline in trading volume and the persistent bearish death cross pattern, underscoring the challenges ahead. Critical resistance levels at $2.20 and $2.50 will serve as key battlegrounds for market participants. While community sentiment remains optimistic about a potential breakout, XRP’s short-term trajectory will depend heavily on its ability to sustain volume and overcome technical hurdles. Investors should monitor these developments closely as XRP navigates this pivotal phase.