XRP - Ascending Channel: Will bulls stay in control?XRP continues to trade within a well-established ascending channel on the 4-hour timeframe, maintaining a bullish structure as long as it respects this formation. The price has consistently formed higher highs and higher lows, signaling that buyers are still in control. However, recent price action suggests that XRP is at a critical decision point, with strong support below and short-term resistance above.
4H Timeframe – Golden Pocket and Imbalance Providing Strong Support
One of the key areas to watch is the golden pocket Fibonacci retracement level (0.618 - 0.65), which aligns with a 4-hour imbalance zone. This confluence has already provided two strong bounces, confirming that buyers are actively defending this area.
The golden pocket is a key retracement zone where price often finds strong support before continuing the trend. Additionally, the imbalance zone represents an area of unfilled liquidity, which price often revisits before resuming its move. The fact that XRP has reacted twice from this level suggests that it remains a critical demand zone.
As long as price remains above this level, the bullish structure is intact, and XRP could continue pushing higher within the ascending channel. The next target for bulls would be the 0.618 Fibonacci extension level, which aligns with the upper boundary of the channel.
However, if this support fails and XRP breaks below the golden pocket and imbalance zone, the structure could shift bearish, leading to a potential breakdown toward lower support levels.
1H Timeframe – Bearish Rejection from Imbalance Zone
While the 4-hour structure remains bullish, the 1-hour timeframe presents a short-term bearish case. Recently, XRP was rejected from a significant imbalance zone, suggesting that sellers are stepping in. This rejection indicates a potential short-term pullback before the next major move.
When price fails to break through an imbalance zone, it often signals that there isn’t enough liquidity to sustain the uptrend. This could lead to a retracement back to lower levels, possibly retesting the golden pocket on the 4H timeframe before another push higher.
Key Levels to Watch
Support Zone: Golden pocket (0.618 - 0.65) + 4H imbalance
Resistance Zone: 1H imbalance rejection area
Bullish Target: 0.618 Fibonacci extension, aligning with the upper boundary of the channel
Bearish Breakdown Level: A break below the golden pocket and imbalance could trigger a deeper retracement
Final Thoughts – Bullish Structure, but Short-Term Weakness
The 4H ascending channel remains intact, and the golden pocket support has held twice, indicating that the uptrend is still in play. However, the 1H bearish rejection from an imbalance zone suggests that XRP could face short-term weakness, leading to a possible retest of support before the next major move.
If XRP holds the golden pocket, the bullish bias remains strong, and we could see a continuation towards 2.80 – 2.90 in the coming sessions. However, if support fails, the structure could shift bearish, bringing lower retracement levels into play.
This setup presents both bullish and bearish scenarios, making it crucial to monitor key levels and wait for confirmation before making a trading decision.
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