XRP has dropped 4.5% over the past week as the recent rally cools off, taking a break after achieving strong momentum since last Wednesday.

Will this pullback invalidate the prediction of XRP price increase?

The token is currently trading at $2.31, after encountering strong resistance at $2.66. Despite the drop, trading volume surged by 72% in the last 24 hours, indicating continued interest even as the price fell by 3% during the day.

However, XRP remains the best-performing cryptocurrency in the top 5 this year, yielding an impressive return of 11.4% year-to-date — outperforming Bitcoin (BTC), which has increased by 10.3% in the same period.

Notably, today Ripple announced that two new enterprise customers have joined its payment platform in the United Arab Emirates, just weeks after they received a license to operate as a native cryptocurrency payment service provider from the Dubai Financial Services Authority (DFSA).

XRP Price Prediction: Price Action Bounces Back From 50-Day EMA

The daily chart shows that Ripple's price action has found support at the 50-day exponential moving average (EMA) in today's trading session, and this still supports the bullish XRP price forecast at this time.

The price has broken below the 21-day EMA, which has not been a reliable support level for the token for some time, but is still trading above the 200-day EMA, meaning the long-term trend remains bullish.

After XRP broke out of the descending triangle pattern, the price achieved two higher highs, maintaining a bullish structure as long as the price remains above the second high.

The $2.30 level remains an important support level — as long as this level holds, the uptrend is maintained and short-term reversal risk is very low in the future.

Today's trading session will be key to assessing the confidence of the buyers. If late buyers enter at this level, it could mark a strong continuation point for the rally, providing an attractive entry for those looking for further gains.

Strong trading volume in this range signals that this is a key area of interest for market participants — making it an important level in the coming weeks.

If this structure breaks down, the 200-day EMA will serve as the next key support level to watch.