XRP is trying to bounce back again. After sliding through much of August, the token managed a 2% rebound in the last 24 hours. The green candles may look comforting on the screen, but the larger picture tells a more complicated story where the risks still outweigh the relief.
A Market That Remembers
According to an analyst, XRP is facing a problem: a bearish divergence that has been building for weeks. In simple terms, price has been climbing while momentum quietly faded in the background. The last time XRP faced a divergence of this size was at the turn of 2020 into 2021. Back then, the pattern was not just a warning. It preceded a painful 60 percent correction stretched across several months.
Today, the pullback is only about 20 to 25 percent from the highs. That leaves experts asking the uncomfortable question: is this correction just getting started?
The Fragile Floor
XRP lost its footing above $2.85, a level that once acted as support but now hangs over the price as resistance. The next battle zone lies at $2.75. If that floor gives way with convincing daily closes, the market could easily test deeper waters between $2.55 and $2.62.
The structure does little to inspire confidence. Price action has been compressing into a descending triangle, a formation that more often than not ends with a breakdown. Should that play out, chart projections point towards the $2.17 region, a level that would mean another 20 percent slide from here.
Between Bulls and Bears
XRP has shown it can bounce, but the chart shows the token is not yet out of danger. A convincing move back above $2.85 would help repair sentiment and challenge the bearish setup. If the price falters at $2.75, the sellers may quickly regain control.
This bounce looks less like a sign of recovery and more like a test of resilience. The next few weeks will decide whether XRP can rewrite its script or whether the market is simply pausing before another act of decline.
