XRP, the popular cryptocurrency, is currently encountering difficulty in surpassing the $2.10 mark, facing a modest decline of more than 1% at the time of writing. Despite these fluctuations, the prevailing sentiment in the market continues to lean bearish. While the price has seen some movement, the broader trend indicates ongoing struggles for XRP to gain sustained upward momentum.

Short-Term Bullish Bounce?

According to Josh, an analyst from Crypto World, a short-term bullish divergence is currently appearing on XRP’s chart. This technical indicator often signals a potential relief rally, a temporary bounce that is commonly seen during such divergences. Over the past few months, XRP has experienced similar movements when such patterns emerged. While this may bring a short-term relief to investors, it’s not necessarily an indicator of a long-term trend reversal. Instead, it’s more of a corrective move in an otherwise bearish market. Historically, these short-term rallies often lead to sideways movement or brief upward momentum before any further declines.

What’s Likely to Happen Next?

With the current support levels holding firm and the bullish divergence in play, XRP is expected to experience either a minor bounce or some sideways price action in the coming days. This kind of movement has been a recurring theme when similar patterns have formed in the past. Investors could anticipate a brief rally or consolidation, which might last anywhere from a few days to a week. The market may see a continuation of this pattern unless stronger bullish signals or macroeconomic factors come into play. However, the key factor to watch will be whether the support levels can hold and if the momentum shifts toward a more sustainable rally.

Will the U.S. Stock Market Influence XRP?

The U.S. stock market has been experiencing significant volatility lately, and many eyes are on how it performs, especially with Monday’s market opening. If the stock market continues to decline, this could have a negative impact on risk assets, including cryptocurrencies like XRP. A bearish trend in the stock market could exacerbate selling pressure in the crypto space and weigh heavily on XRP’s price. However, if the U.S. stock market finds a bottom and begins to recover, this could provide some relief to XRP and other cryptocurrencies. In this scenario, XRP might gain some breathing room for a short-term bounce or consolidation, benefiting from the positive sentiment in the broader financial markets.

Resistance Levels to Watch

In the near term, XRP faces significant resistance in the $2.24 to $2.30 range. This is a crucial level where XRP has previously encountered rejection. If XRP can break above this resistance, the next levels to watch would be $2.48, $2.56, and then between $2.65 to $2.80. These resistance levels will determine whether XRP can sustain an upward momentum or if it will continue facing obstacles in its attempts to rally. Breaking through these levels would signal the potential for a stronger recovery, but failure to do so might result in another round of declines.

The Day Ahead

For the next day or so, the outlook for XRP remains relatively neutral, with expectations of either continued relief or sideways movement. No major bearish moves are anticipated at the moment, making the short-term outlook slightly positive. However, it’s important to keep an eye on key resistance and support levels, as well as the broader market sentiment, which could quickly change if new developments occur.

In conclusion, while XRP might experience a short-term bounce or consolidation, the overall market sentiment remains cautious. Investors should monitor important technical indicators and macroeconomic factors closely. Breaking key resistance levels will be crucial for the cryptocurrency to shift the current trend, and further market dynamics could either fuel a rally or contribute to continued struggles for XRP.