Ripple's XRP has once again become the center of attention after rising to $3.27 at the time of writing, testing the descending trendline that has acted as a resistance since the price surge in late July to $3.50. This move places this cryptocurrency in a position likely to break above the $3.30 mark, a level that could set the stage for a new price surge.
The current market structure shows a downward trendline forming over the past three weeks, after XRP retreated from the July peak. A quick recovery from the $3.00 support zone in recent sessions has brought this token back to a significant distance from that resistance level.
Technical Indicators Indicate a Decisive Moment
A daily close above $3.30 would signal the start of a new bullish trend, with potential targets at $3.50 and $3.70. However, analysts warn that XRP's recent price increase has not been accompanied by rising trading volume, an important factor in confirming the strength of any breakout.
Historically, breakouts without solid trading volume often lead to short-term price increases. In this case, traders will be monitoring whether there is interest from institutions or large buying forces emerging to sustain the upward momentum.
Although trading volume is quite limited, XRP's technical outlook remains positive. The 20-day exponential moving average (EMA) at $3.07 has served as a reliable short-term support level during recent corrections, while the 50-day EMA at $2.81 provides stronger safety for long-term bullish sentiment.
If the trendline is broken, maintaining prices above $3.30 in subsequent sessions will be crucial to confirm the breakout. Otherwise, XRP may revert to the $3.07 level or even test the $2.81 support level before attempting another price increase.
Wider Market Context and Institutional Factors
Price volatility occurs against the backdrop of an increasingly optimistic XRP market, driven by Ripple's expanding global partnerships in the cross-border payment sector and ongoing speculation about a potential XRP exchange-traded fund (ETF) in the United States. These developments, along with the recent resolution of Ripple's legal battle with the SEC, have bolstered investor confidence.
What Is the Next Step for XRP?
In the short term, all attention is focused on the resistance level of $3.30. A breakout supported by strong buying activity could quickly push XRP to the $3.50 region, with a secondary target near $3.70 if the upward momentum is maintained.
On the contrary, being rejected at the trendline could trigger another consolidation phase, with important support levels at $3.07 and $2.81. Market observers note that the next 48 hours could be a crucial time. If buyers come in with stronger conviction, XRP may be poised for the next major price increase.
