XRP recently recorded its first green candlestick on the daily Heikin-Ashi chart, indicating that a trend reversal may be looming.
Notably, XRP is showing early signs of recovery after a steep decline from $2.41 on Jan. 6 to a yearly low of $1.80 on Jan. 25. The appearance of a green Heikin-Ashi candle on Jan. 27, the first in nearly two weeks, suggests that the prolonged downtrend may be easing, and buying momentum is starting to return.
Moreover, technical indicators confirm the potential for a trend reversal amid improving momentum. Specifically, the MACD is approaching a bullish crossover, the Stochastic RSI has rebounded from extreme oversold levels, and the RSI is climbing toward its moving average.
Key Points
- XRP recently rebounded from $1.80 to $1.91, showing early recovery from its latest low.
- With this recovery, it recorded its first green Heikin-Ashi candle in 12 days, breaking the sustained downtrend.
- The MACD line is rising while the signal line moves downward, potentially leading to a bullish crossover.
- XRP’s Stochastic RSI has also climbed to 20 after falling to 2.12, indicating a move out of extreme oversold territory.
- The RSI increased from 34.61 to 41.04 and is approaching a crossover above its moving average at 42.45.
- Consecutive green Heikin-Ashi candles suggest growing buying momentum and a potential trend reversal.
XRP Starts to Stabilize After Sharp Decline
Market commentator CW confirmed this in a recent exposition, as XRP attempts a rebound. Specifically, XRP is showing early signs of strength after a prolonged pullback that followed its rally to $2.41 on Jan. 6.
After this high, selling pressure quickly took control, pushing XRP into a steady downtrend alongside broader market weakness. The decline deepened over the following weeks, driving prices to a new yearly low of $1.80 on Jan. 25.
However, since this bottom, XRP has started to recover. At press time, the price has climbed to $1.91, signaling growing buying interest. believes this move may mark the beginning of a trend reversal, citing data from the Heikin-Ashi chart and four indicators.
Heikin-Ashi Candle Breaks Two-Week Bearish Streak
For the uninitiated, Heikin-Ashi charts smooth out price action by averaging candle values. Notably, long stretches of the same color often indicate strong directional movement, suggesting that any change may be important.
For XRP, the chart showed red candles every day from Jan. 15, 2026, through Jan. 26, totaling 12 consecutive bearish sessions. This pattern came amid consistent selling pressure and a firmly established downtrend. Interestingly, on Jan. 27, the streak finally ended when a green Heikin-Ashi candle appeared, confirming that buyers had begun to regain control.
The recovery attempt has continued at press time. Today, XRP looks set to post another green candle, indicating that the bearish momentum may be weakening. Consecutive green Heikin-Ashi candles typically signal that a market is transitioning away from a downtrend toward stabilization or reversal.
MACD Shows Momentum Shifting Toward Bulls
Additionally, CW highlighted four momentum indicators that may support the narrative of a reversal. These include the MACD, a momentum wave indicator, the Stochastic RSI, and the traditional RSI.
Specifically, the MACD, which tracks trend strength and direction, has printed red histogram bars since Jan. 17, confirming ongoing bearish momentum throughout the decline. However, the relationship between its lines has started to change.
The MACD line has turned upward while the signal line continues to move downward. This narrowing gap indicates a looming golden cross if XRP’s recovery holds. A bullish MACD crossover often marks the early stages of a trend reversal, as momentum shifts from sellers to buyers.
Stochastic RSI Rebounds from Extreme Oversold Levels
In addition, the Stochastic RSI provides further bullish evidence. After XRP peaked at $2.41 on Jan. 6, the Stochastic RSI dropped sharply from its 100 high. The selloff pushed the indicator down to just 2.12 by Jan. 26. Such low readings often appear near short-term market bottoms.
As XRP prints two green Heikin-Ashi candles, the Stochastic RSI has rebounded to 20 at press time. This recovery suggests that selling pressure is easing and that buyers are slowly returning.
RSI Recovery Bolsters Reversal Outlook
Meanwhile, the Relative Strength Index also shows improving conditions. XRP’s RSI reached 78.51 on Jan. 6 when the price hit $2.41. However, as the downtrend unfolded, RSI steadily declined, eventually hitting a low of 34.61 on Jan. 25 as sellers dominated the market.
Since then, RSI has climbed to 41.04 amid renewed buying activity. More importantly, the RSI line is now approaching a crossover above its moving average, which sits at 42.45. This type of move often serves as confirmation that momentum is shifting in favor of buyers.
Important Caveat
Despite these bullish signals, XRP still needs continued green Heikin-Ashi candles and confirmed indicator crossovers to fully validate a trend reversal. If this fails to happen, the ongoing rebound could transform into a bull trap, eventually slipping back into bearish territories.
