XRP has entered a consolidation phase after a recent recovery, currently trading below $2.50 as bulls and bears battle for control. The price is attempting to climb above the $2.420 zone, showing early signs of bullish momentum. However, strong resistance near $2.50 and $2.60 could dictate the next major price move.
The market data from Kraken indicates that XRP is trading below its 100-hourly Simple Moving Average (SMA). On the hourly chart, a bearish trend line is forming near $2.50, presenting a crucial level for bulls to overcome if an upside surge is to occur.
Technical Indicators Suggest Possible Upside
XRP’s recent recovery started from support around $2.30, following broader market gains in Bitcoin and Ethereum. The price climbed past $2.35 and $2.40, entering a positive zone. Bulls managed to push XRP above the 61.8% Fibonacci retracement level of the downward wave from the $3.05 swing high to the $1.40 swing low.
Despite this progress, bears remain active near $2.55–$2.60, preventing a decisive breakout. If XRP successfully breaches the $2.60 resistance, it could target the 76.4% Fibonacci retracement level at $2.66. Clearing this barrier may set the stage for further gains toward $2.75 and $2.78, with the next major hurdle around $2.82.
Analysts note that these levels represent critical zones where traders should watch for confirmation of momentum. A sustained break above $2.60–$2.66 could signal the start of a stronger bullish trend.
Support Levels to Watch for Downside Risk
If XRP fails to clear the immediate resistance, a decline could follow. Initial support is found near $2.40, with the next major level at $2.30.
A break and daily close below $2.30 may open the door to further downside toward $2.2420, followed by $2.22 and potentially $2.12 if selling pressure intensifies. Traders are advised to monitor these support levels closely, as they may act as key pivot points for price recovery or continued decline.
Market Sentiment and Broader Implications
The XRP market remains sensitive to broader crypto trends. Positive momentum in Bitcoin and Ethereum often supports altcoins like XRP, while negative moves can exacerbate short-term selling pressure. Technical patterns indicate that the current consolidation is a preparatory phase, with buyers accumulating below resistance zones before attempting a breakout.
If bulls successfully push XRP above the $2.60–$2.66 range, the cryptocurrency could experience a strong upward wave, attracting both retail and institutional traders seeking entry in anticipation of a potential breakout toward $2.75–$2.82.
Trading Strategy Considerations
For traders looking to capitalize on the potential upside, the key levels to watch are:
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Resistance: $2.50, $2.60, $2.66, $2.75, $2.82
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Support: $2.40, $2.30, $2.2420, $2.22, $2.12
Breaks above or below these levels are likely to dictate the next major price trend. Short-term traders may consider setting stop-losses below $2.30 to manage downside risk, while targeting profits near $2.66–$2.75 in case of a successful breakout.
Conclusion: XRP on the Verge of a Potential Surge
XRP’s current consolidation below $2.60 reflects a critical juncture for bulls. If buyers overcome key resistance levels, the cryptocurrency could initiate a fresh upward trend toward $2.75 and beyond. Conversely, failure to breach resistance could result in a retracement to support zones around $2.40–$2.30.
With market participants closely watching these levels, the next few trading sessions could determine whether XRP continues its bullish recovery or faces renewed downside pressure. Technical analysis suggests that overcoming $2.60–$2.66 could trigger a significant upside explosion, making this a pivotal moment for XRP traders.
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