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After a short correction XRP has proven resilient, and there are indications that it may rise again toward the $3 mark, which was last reached during earlier periods of high euphoria. The recent rally around the $2.80 range is not just a relief rally; if significant resistance levels are met with high volume, it could serve as the catalyst for a larger upward move.
XRP falls off
After a string of sharp daily red candles, the chart shows that XRP has regained the 21-day EMA. An oversold RSI dip below 46 served as a buyer trigger and supported this bounce. XRP is currently trading at $2.87, but short-term momentum may move it closer to $2.96, the next immediate resistance level that is indicated by a psychological round number barrier and a local high.
The real battleground will be in the $3.20-$3.25 range above $2.96. Sellers trying to lower their risk will probably contest this zone, which corresponds with the peak of the last spike. If this is broken, it would indicate strength and could pave the way for a retest of $3.50, the crucial resistance level that would allow for additional upside.
XRP's price analysis
On the downside, bulls must maintain the price above the level where the 50-day and 100-day moving averages converge, which is between $2.64 and $2.67. If this support is not maintained, the immediate bullish thesis would be refuted and a decline toward the 200-day MA at $2.33 would probably be in order. With more highs and lows since mid-June, the overall structure is still bullish.
Strong buyer participation was indicated by the noticeably higher volume during the most recent upward leg. Significant growth in the volume of on-chain payments has also been observed, offering a key tailwind that upholds the legitimacy of the rally. Put simply, $3.50 is a logical next target if XRP can convincingly break above $3.25.
From there $3 is not just a possibility, it becomes the new baseline. Investors should pay close attention to RSI behavior and follow volume spikes at resistance levels. If momentum continues, XRP may return to $3 sooner than most people anticipate.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team