XRP has enjoyed a sharp rebound after a brutal sell-off that sent the price spiraling into deep capitulation territory, leading to a quick and aggressive rebound. While the recovery is clearly showing strength in the short term, the bigger question remains whether this move marks the start of a meaningful trend shift or just a new upswing within a broader downtrend.
Capitulation flush sets the stage for a leap
XRP has recently emerged from a sharp sell-off that has pushed another lower low, underscoring the strength of the bearish pressure in recent weeks. According to According to MakroVision Research, such impulsive downward moves are often seen in the later stages of broader corrective phases, where panic selling and capitulation tend to peak as weaker hands are washed away.
From that capitulation low, price action begins to stabilize and transition into a near-term recovery attempt. Buyers were quick to respond, suggesting that selling pressure may ease for now and the market is trying to build a base after the sharp decline.
The recovery itself occurred with remarkable momentum, as XRP rose more than 30% in a relatively short period of time. This impulsive recovery is typical of the initial reactions after a strong sell-off.
Despite the encouraging near-term strength, the broader structure remains under pressure and XRP is still stuck in a medium-term downtrend. Unless the price decisively breaks above the descending trendline and regains the key resistance cluster around $2.20, the bigger picture continues to favor a bearish bias rather than a confirmed bullish reversal.
Upside recovery needed to change the XRP narrative
MakroVision Research further noted that the recovery phase highlights several critical levels. A sustained move back above the $1.80-$1.85 zone would be the first clear indication that buyers are starting to regain control, opening the door for a broader continuation of the recovery.
Until that happens, downside risks remain. The liquidity area extending towards the $1.35 level continues to act as an important reference point, as price can still pull back to this zone if the current recovery loses momentum.
The company also warned traders to pay close attention to the nature of the countertrend move. Recovery rallies that unfold in deep, impulsive bursts often indicate distribution rather than accumulation, and in earlier market phases this type of price action has often preceded another leg lower.
Overall, XRP has stabilized after the sharp sell-off and is trying to build a short-term base. While the immediate reaction shows strength, the broader market structure remains bearish as long as the resistance cluster price remains near $2.20. Whether this move develops into a sustained recovery or fades to a new lower high will depend on how the price behaves around these key levels.