XRP Shows Signs of a Sharp Rebound After Dropping to $2.34

XRP bounced from $2.34 with strong volume, signaling potential bullish momentum.

Rising channel pattern supports mid-term bullish outlook if $2.35 holds.

A breakout above $2.60 could push XRP toward $2.80 resistance.

Ripple's XRP took a hit, dipping to $2.34 before bouncing back to $2.42 within hours. Traders braced for turbulence, but the volume spike hinted at more than just panic. Over $5.6 billion flooded into XRP trades, suggesting active repositioning. That kind of movement doesn’t whisper—it roars. While a 2.01% dip shook some nerves, seasoned holders saw opportunity. The price clings to crucial support, but signs now point toward a possible rebound rally.

XRP Volume Spikes as Price Touches Channel Support

XRP remains within a rising channel, a pattern that often fuels bullish sentiment. After rejecting resistance near $2.60, the token fell back to the midline support between $2.42 and $2.35. Traders now treat this range like a battleground. The bulls seem to defend it. The bears try to push further. The daily RSI reads 56.91, just under the signal line. That subtle difference suggests weakening momentum. However, it doesn’t scream collapse. Instead, it paints a picture of hesitation.

Earlier this week, the RSI crossed above 70, signaling overbought conditions. Now, a mild cool-off brews potential for renewed strength. Meanwhile, market activity surrounding XRP grew louder. Volume surged by over 15%, hitting $5.75 billion. That kind of money moving around during a dip tells a different story. Some traders may have cashed in. Others likely re-entered lower, preparing for another leg up.

What’s Next for XRP: Breakdown or Bounce?

Bitcoin's flirtation with the $105,000 level may have triggered caution. If Bitcoin slips, altcoins often follow. But XRP seems to hold its ground. Market cap remains strong, hovering around $142 billion. A drop below $2.35 could unlock deeper losses. Targets include $2.20 and possibly even $2.00. That move would likely break the rising channel’s structure. It would challenge the short-term bullish outlook.

Still, the token hasn’t collapsed. Instead, XRP hovers right above danger. If buyers manage to push the price above $2.51, they might reclaim momentum. The $2.60 level could serve as a launchpad. That would reignite talk of $2.80 as the next resistance. Momentum will decide the outcome. Right now, XRP sits on the fence, swaying slightly with every trade. Beyond price action, Ripple’s legal battle with the SEC continues to cast a shadow.

Analysts believe uncertainty there may add pressure to the price. Still, the token hasn’t unraveled. Despite everything, XRP shows grit. As other altcoins like Pendle and EOS climb, XRP could soon join the leaders. That bounce from $2.34 wasn’t just reflex—it felt like survival instinct. Bulls just might be warming up.