A strong rebound from a significant support level can rapidly alter market sentiment. XRP has demonstrated this, experiencing a sharp increase after touching the lower boundary of a long-term descending channel. This development has reignited interest among traders, who are now closely observing the chart for signs of a broader recovery. The critical question remains whether XRP can sustain its current upward momentum to challenge the next technical resistance.
In a recent analysis shared on X, prominent market analyst Ali highlighted that XRP has bounced directly off the lower boundary of the descending channel on the 3-day chart. He indicated that this reaction could lead to a potential move toward the midpoint of the structure, which is situated near $2.60. His commentary has garnered significant attention, reinforcing expectations of a possible near-term continuation if buyers maintain their position.
$XRP bounced off the bottom of the channel and could be heading toward the midpoint around $2.60. pic.twitter.com/8gzG8yjYuN
— Ali (@ali_charts) November 26, 2025
Technical Structure and Current Setup
The descending channel that has influenced XRP's price action over several months remains in effect. Historically, each test of the lower boundary has resulted in strong reactions, underscoring the reliability of this structure. Following the latest rebound, XRP is currently trading at $2.17, located in the lower-mid region of this channel.
The immediate technical target is the channel's midpoint, which is located around the $2.60 mark. A decisive move above this level would signify an improvement in market structure and shift momentum in favor of buyers. Conversely, a failure to approach the midpoint could invite renewed selling pressure.
Market Conditions and Liquidity Dynamics
Recent market behavior has been characterized by increasing volatility and sudden surges in liquidity. Trading volume has expanded concurrently with the recent bounce, suggesting heightened participation from both retail and institutional investors.
The broader cryptocurrency market sentiment remains mixed, contributing to uncertainty surrounding XRP's future trajectory. While short-lived buying impulses have supported the current rebound, sustained upward momentum will necessitate continuous capital inflows.
Trading Implications and Short-Term Expectations
For short-term traders, the channel's midpoint near $2.60 is considered the most logical initial target. This level represents a natural point of resistance within the established downward-sloping trend. A strong closing price above this level would bolster bullish conviction and open the possibility of targeting the channel's upper boundary.
However, a failure to advance toward the $2.60 target could indicate underlying weakness and increase the risk of another retest of the lower boundary. Given the sharp price fluctuations often seen in XRP's trading history, clearly defined invalidation levels are crucial.
Outlook and Final Thoughts
XRP's recent rebound presents a clearer technical picture compared to recent weeks. Ali's analysis emphasizes the significance of the $2.60 level in determining the market's next directional move. The descending channel continues to be the dominant pattern, with the midpoint serving as the key battleground.
Traders are now focused on monitoring volume, chart structure, and confirmation signals as XRP attempts to maintain its current upward trend. This bounce has generated a constructive short-term narrative, but sustained momentum is essential for a decisive shift in the overall outlook.