XRP Forms Doji Candle Pattern: What This Technical Signal Means for Traders

XRP has caught the attention of technical analysts this week as the cryptocurrency exhibits a gravestone doji formation on its weekly timeframe. This candlestick pattern, characterized by an opening and closing price at nearly identical levels with a pronounced upper shadow, has emerged following a notable price rally that saw XRP peak at $2.41 in early January.

Understanding the Doji Candle Signal

A doji candle represents a moment of market indecision, where buyers and sellers find themselves at an impasse. The gravestone variant—featuring a long upper wick and minimal body—carries particular significance when it appears after sustained uptrends. Historically, this configuration can signal potential bearish reversal pressure, prompting traders to exercise caution regarding continued bullish momentum.

The pattern’s emergence on XRP’s weekly chart has not gone unnoticed by the trading community, with analysts flagging the technical setup as warranting close observation in the coming days.

Market Activity Shows Notable Pullback

Recent market dynamics have reflected some cooling in trader participation. Trading volumes across the 24-hour window declined substantially to $112.24 million, marking a significant contraction from previous levels. This reduction in trading activity frequently accompanies periods of price consolidation and heightened uncertainty.

Concurrent with this technical pattern, U.S. spot XRP exchange-traded funds experienced their maiden outflow day since their November launch, with approximately $40.8 million in net withdrawals recorded. This shift from the consistent inflow trend suggests evolving sentiment among institutional participants.

Current Price Action and Support Levels

At present, XRP trades near $1.97, reflecting a 3.85% decline over the past 24 hours and a 3.95% weekly decrease. The cryptocurrency has established a consolidation zone ranging between $1.77 and $2.41, with particular attention being drawn to the daily 50-period moving average positioned at $2 as a critical support threshold.

Should this support level hold firm, XRP could maintain bullish structure in the near term. However, a break below this point would intensify bearish pressure and potentially accelerate downside momentum.

Resistance Levels and Upside Targets

For traders maintaining constructive positioning, the next meaningful resistance barrier emerges at $2.56, which aligns with another significant moving average level. A decisive close above this zone could reignite bullish participation and pave the way toward $3 and $3.5 as successive upside targets.

The coming sessions will be instrumental in determining whether the doji candle formation evolves into a genuine reversal signal or merely represents a temporary consolidation within a broader uptrend. Technical traders remain positioned to react swiftly to whichever direction price action confirms.