XRP has staged a notable rebound from around $1.74, a zone where the 0.618 Fibonacci retracement aligned with the value area low. That technical confluence created a strong support base, prompting buyers to step in aggressively and lifting short-term sentiment after a period of weakness.
Even so, the move has not yet confirmed a full trend reversal. The current recovery looks constructive, but XRP still needs to reclaim a major overhead resistance to prove that this rally is more than a temporary bounce. The market is now shifting its attention from support defense to whether price can break the broader bearish structure.
Why the $1.74 level matters
The importance of $1.74 comes from the fact that it is not just a standalone support level. It combines a key Fibonacci retracement with the lower boundary of the recent value area, making it a high-probability demand zone. In technical analysis, this kind of overlap often attracts buyers looking for discounted entries within a larger trading range.
XRP’s sharp reaction from that area suggests sellers were absorbed and buyers were willing to defend the level decisively. For traders, this type of response often marks a short-term inflection point, especially when it occurs at a high-time-frame support cluster.
Point of control becomes the main battleground
After bouncing from support, XRP has advanced toward the point of control (POC), the price level with the highest traded volume in the recent range. This area often acts both as a magnet for price and as a major resistance during corrective rallies.
If XRP can reclaim the POC and close above it on a daily basis, the market would have a stronger case for calling this a meaningful bullish shift rather than a brief reaction. On the other hand, rejection at this level would indicate that sellers still dominate the broader setup, raising the risk that the current move becomes a failed rally.
Higher-time-frame structure is still bearish
Despite the recent improvement in momentum, XRP’s larger market structure remains bearish for now. The chart is still defined by a pattern of lower highs and lower lows, which means the prevailing downtrend has not yet been invalidated.
A more convincing structural recovery would require XRP not only to reclaim the POC but also to print a higher closing high, breaking the sequence that has controlled price action so far. Until that happens, upside moves should still be treated cautiously as possible corrective rallies within a broader bearish market.
What traders may watch next
In the sessions ahead, two conditions are likely to shape XRP’s next directional move: whether price can continue to hold above $1.74, and whether bulls can secure a daily close above the POC. As long as support remains intact, the short-term bullish argument stays alive.
If buyers succeed in reclaiming the key resistance, the next upside objective could open toward the $3.43 value area high. If not, the market may interpret the rebound as another temporary recovery within a bearish framework, with price at risk of rotating back toward support.