[DigitalToday reporter Jinju Hong (홍진주)] An analysis said XRP’s additional rebound could be limited by a large volume of sell orders stacked overhead.

According to blockchain media outlet BeInCrypto on April 6 (local time), XRP rose about 3 percent over the past 24 hours, but near-term downside risk remains in place based on technical patterns and on-chain data.

The chart shows a typical head-and-shoulders pattern in progress. The left shoulder formed in late February, the head formed around $1.6 in mid-March, and the right-shoulder zone is now continuing around $1.33, it said. The neckline was presented at $1.26, and if that level breaks, it saw room for an additional decline of about 19 percent.

The first hurdle for a short-term rebound is recovering the exponential moving averages (EMA). The 20-day EMA is at $1.35 and the 50-day EMA is at $1.42, acting as key resistance levels. The analysis said a daily close above $1.35 is needed to confirm a short-term bullish signal. Still, a rebound that fails to break the $1.6 high leaves the possibility of completing the right shoulder within the pattern.

On-chain data also clearly shows a tug-of-war between upper and lower levels. Around 719 million tokens of buying volume is stacked in the $1.31 to $1.32 range, which could act as short-term support. If selling pressure increases in that area, the $1.26 neckline could quickly be put to the test, it said.

The biggest burden is about 1.24 billion tokens concentrated in the $1.45 to $1.47 range. It assessed that break-even selling by investors who bought at those levels is likely to pour out, and that the sell wall must be absorbed for a meaningful rise.

On the supply-demand side, weakening buying momentum has been confirmed. The Exchange Net Position Change indicator, which shows exchange fund flows, narrowed to minus 57 million tokens on April 5 from minus 117 million tokens in late March. BeInCrypto analyzed this by saying, "The buying pressure that supported the rally has been cut to about half."

It also presented a turning point for the price trend. Recovering $1.35 is the first hurdle, and then $1.4 and $1.44 are expected to act as sequential resistance. The key confirmation line was cited at $1.48. If that level is broken and a daily close is achieved, it said the possibility of absorbing the upper supply zone could open. If XRP fails to recover $1.35, the $1.26 to $1.27 range will remain under pressure, and if it falls below $1.26, $1.03 is cited as a downside target.