XRP’s ‘Spinning Bottom’ Candlestick Points to Possible Reversal as Bitcoin Clears Key Trendline

XRP ($2.7952) printed a “spinning bottom” candlestick pattern on Monday, hinting at a potential shift in sentiment after weeks of selling pressure. The formation occurs when prices swing widely intraday but close near the open, reflecting a tug-of-war between buyers and sellers with no clear winner.

When this pattern emerges following a sharp decline and near key support levels—as in XRP’s case—it often signals that bearish momentum may be fading and buyers are beginning to step in.

XRP’s spinning bottom comes after a 25% slide from July’s $3.65 peak, with support aligning near the August 3 low, a level that previously sparked a strong rebound. While the pattern alone doesn’t guarantee an immediate rally, analysts typically look for confirmation from follow-up price action—specifically, a bullish close above Monday’s $2.84 high. XRP is currently trading near $2.80.

Technical Picture Still Cautious

Short-term momentum indicators remain weak. The 5- and 10-day moving averages continue trending lower, while the Guppy multiple moving average band has recently flipped bearish. A breakdown below Monday’s $2.69 low could open the door to further downside.

Still, some undercurrents suggest resilience. Despite a negative MACD histogram since late July, XRP has largely consolidated between $2.70 and $3.00, rather than breaking sharply lower. A bullish crossover on the MACD could ignite a stronger recovery, mirroring the dynamic seen in bitcoin during September last year when it rebounded from below $60,000.

Support: $2.69 (Monday’s low), $2.65 (May swing high), $2.48 (200-day SMA)
Resistance: $2.84 (Monday’s high), $3.38 (August high), $3.65 (July high)

Bitcoin Clears Descending Trendline

Meanwhile, bitcoin has broken above a descending trendline tied to its pullback from record highs above $124,000. However, its broader outlook remains fragile. BTC is still trading below major resistance levels, including the Ichimoku cloud and the 50- and 100-day simple moving averages, as well as the August 3 low.

A bearish divergence in the monthly RSI further clouds the picture, suggesting rallies could face persistent selling pressure. For sentiment to meaningfully shift, bitcoin would need to establish a sustained move above the Ichimoku cloud—a critical resistance zone.