XRP's Descending Channel Traps Price, Bullish Breakout Looms

XRP has been struggling to maintain its momentum after its August surge, and now finds itself trapped in a descending channel on both the daily and 4-hour charts. On the daily chart, XRP is currently trading around $1.40, having dropped from the explosive move from $1.00 to $1.55. The price has been rejected near $1.48, where it also encountered the channel's upper boundary.

A confirmed daily breakout above the channel could be an important bullish signal, with XRP potentially challenging previous highs of $1.48-$1.55 and then targeting the major resistance zone of $1.61-$1.70. However, a breakdown below the $1.33-$1.36 region would weaken the recovery scenario and expose the lower channel boundary, which is converging towards the broader demand zone of $1.22-$1.27.

The 4-hour chart shows the corrective structure more clearly, with XRP bouncing from the $1.34-$1.36 support zone but unable to break through the descending resistance around $1.43-$1.45. A breakout above this level would be a positive indication of short-term momentum shifting back towards buyers.