XRP’s ‘Spinning Bottom’ Hints at Recovery Rally as BTC Takes Out Descending Trendline

XRP’s ‘Spinning Bottom’ Hints at Recovery Rally as BTC Takes Out Descending Trendline

XRP recently formed a classic “spinning bottom” candlestick on the daily chart after sliding nearly 25% from July’s peak around $3.65. The token is now consolidating near $2.80, where buyers appear to be defending a key support area. This technical setup has caught traders’ attention, raising hopes for a potential recovery if momentum shifts back in favor of bulls.

However, the broader sentiment still leans cautious. While the spinning bottom signals possible exhaustion in selling pressure, bears remain active and could push prices lower if support gives way. The next few sessions will be critical in confirming whether XRP can stage a meaningful rebound or if the market will see another leg down.

Why the spinning bottom matters

A spinning bottom appears when price swings widely intraday but closes near the open, reflecting two-way interest without a decisive winner. In XRP’s case, the pattern formed after a notable drawdown and right at a previously defended area near the Aug. 3 low—an ideal context for a potential XRP spinning bottom recovery rally. It’s an early signal, not a guarantee.

Confirmation trigger:
Technicians typically wait for a close above the pattern’s high to confirm momentum shift. For XRP, that focus level is $2.84. A daily close above it would strengthen the reversal case; failure keeps consolidation (or downside) in play.

Short-term trend still leans bearish

• 5- & 10-day SMAs: Both slope lower, implying short-term pressure remains with sellers.

• Guppy multiple moving averages: Recently flipped bearish and stay that way until price reclaims and holds above the short-term ribbon.

• Invalidation risk: A breakdown through $2.69 (Monday’s low) could open a sharper leg down.

Key levels

• Support: $2.69 (Monday low), $2.65 (May swing high), $2.48 (200-day SMA)

• Resistance: $2.84 (pattern high), $3.38 (August high), $3.65 (July high)

  

Momentum undercurrents to watch

The MACD histogram has been negative since late July, yet price has mostly ranged $2.70–$3.00 instead of trending sharply lower. That relative resilience means a bullish MACD crossover—should it arrive—could be the spark for an XRP spinning bottom recovery rally. Think “coiled spring”: muted price drift while momentum quietly resets.

BTC context: trendline break, but overhead weight

Bitcoin has pushed above a descending trendline drawn from the pullback off all-time highs near $124,000. Even so, the immediate setup remains heavy beneath the Ichimoku cloud, the 50- & 100-day SMAs, and the Aug. 3 low. A bearish divergence on the monthly RSI underscores the risk that bounces meet supply. For a durable shift, BTC needs a decisive break-and-hold above the cloud—otherwise equity-like “fails at resistance” behavior can cap altcoin enthusiasm, XRP included.

Trading blueprint

• Bullish validation: Daily close > $2.84, followed by higher low on retest.

• Trend flip clues: Short MAs curling up; Guppy short-term ribbon turning supportive; MACD bullish cross.

• Risk control: Below $2.69 raises probability of a slide toward $2.65 or the 200-day (~$2.48).

• Scenario framing: A confirmed break could set the stage for an XRP spinning bottom recovery rally, with intermediate targets at $3.38 and $3.65 if momentum broadens.

Price snapshot: XRP ~$2.81 at writing; intraday focus remains the $2.84 pivot.

Bottom line

XRP has shown a potential stalling signal at support, but confirmation above $2.84 is needed to shift momentum toward buyers. Until then, bears maintain the short-term advantage, keeping the price action under pressure.

A bullish setup could strengthen if the MACD turns positive and moving averages begin to align in favor of an uptrend. On the flip side, a drop below $2.69 would expose XRP to further downside risks. Traders should stay cautious, manage risk carefully, and wait for clear chart confirmation before positioning for a possible recovery rally.

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