The XRP cryptocurrency has recently risen by 1.74%, and the price has entered a consolidation period after the recent crash. The chart shows a clear formation of a flag pattern above a key support area, with the $2 level being an important structural area that has been defended previously, as the price currently continues to trade within a narrowed range around this level.
Key technical points for XRP price
The $2 level remains the most important support, as several tests have shown that buyers are defending this level.
The flag pattern is forming with converging support and resistance levels towards the peak.
If the price breaks above the $2.62 level, the market structure will shift to an upward trend, while a break below the $2 level will lead to the cancellation of this technical formation.
On the other hand, XRP has experienced two major tests of the $2 support level, which confirms its importance as a structural area in the current market environment. The first test held strong, while the price is currently undergoing the second test, forming the lower boundary of the emerging flag pattern.
Notably, this pattern represents a state of balance after a highly volatile downward movement. Such patterns are common following breakdown events, as the price compresses within a defined range until a directional breakout is triggered.
The upper limit of the flag pattern currently aligns with the resistance area on the shorter time frame, near the $2.30 to $2.40 level. A successful breakout of this area would open the possibility of an upward wave towards $2.62, which is the main resistance level on the longer time frame that must be surpassed to restore the bullish market structure.
In contrast, any daily close below the $2 level will lead to the cancellation of the flag pattern, revealing low liquidity levels, which increases the likelihood of a continued decline towards the previous breakdown area.
Upcoming price movement forecasts
If the $2 level continues to hold and bullish trading volumes appear, XRP may start a breakout move towards $2.62, potentially reaching the upper value area above. However, any break below the $2 level on a closing basis will lead to the cancellation of the pattern and reveal low liquidity levels.
