Ripple has reached the decisive price range of $2.3–$2.5, with an impending breakout that will determine the upcoming trend. A bullish breakout would pave the way for a sustainable rally towards the $3.1 range.
XRP Analysis
Daily Chart
XRP's recent bullish trend has stalled at the upper boundary of a prolonged descending wedge near $2.7, triggering a bearish pullback. However, the price is currently consolidating within the decisive and tight range between $2.3 and $2.5, bounded by the top of the wedge. This area has become a crucial battleground between buyers and sellers.
The current pullback can also be understood as a retest of the recently broken 100 and 200-day moving averages, which may bring demand back into the market. A breakout from this narrow range seems imminent, and the direction of this breakout could determine XRP's next major move. A bullish breakout above $2.5 would open the door for a sustainable rally towards the resistance area of $3.1.
4-Hour Chart
On the lower time frame, Ripple has maintained a broader bullish structure in recent days, breaking above the descending wedge pattern. However, the asset has faced significant selling pressure around the resistance level of $2.7 and was quickly rejected, falling back into the wedge pattern. This volatility suggests a potential bullish trap and false breakout.
Currently, XRP is holding above the key support level of $2.3, where buying interest may reappear. If this level holds, a new bullish wave towards the $2.7 range is likely to occur. However, the market is awaiting a decisive breakout from the consolidation range of $2.3–$2.5.
If the breakout is bullish, the price could quickly surge to the resistance level of $3.1. Conversely, a drop below $2.3 could trigger a sharp decline to the support level of $2, especially if accompanied by short selling or panic selling from over-leveraged long positions.