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With the price of XRP soaring to $3.28 and hitting the descending trendline that has capped its recovery since the late-July highs around $3.50, the cryptocurrency is once again in the news. With today's move, XRP is now within striking distance of a possible breakout above $3.30 despite the trendline serving as a crucial technical barrier for almost three weeks.
XRP's market setup
The setup is straightforward: XRP created a textbook descending trendline and entered a short-term correction after peaking at $3.50. With the recent quick rally from the $3.00 support zone, the price is currently attempting to break through that same trendline once more.
A daily close above $3.30 might indicate the beginning of a new upward leg, with $3.50 and $3.70 as the next targets. Nonetheless, trading volume is a significant factor restraining the bullish enthusiasm. During the past few sessions, volume has actually been trending lower, even though the price has increased significantly.
Because they do not have the momentum to support follow-through buying, breakouts in technical analysis that do not have strong volume confirmation can occasionally produce false signals. However, the moving averages continue to provide XRP with strong structural support.
XRP's safety net
While the 50-day EMA ($2.81) serves as a stronger safety net for bulls, the 20-day EMA ($3.07) has remained stable during recent declines. The overall upward trend looks fine, as long as these levels hold, even if brief oscillations appear.
A retest of the breakout level in the days (or even hours) ahead is the most important thing right now, especially if XRP breaks $3.30 today without a significant volume spike. Remaining above that threshold would reinforce the argument for further growth. On the other hand, if the trendline is not broken, the price may return to $3.07 or even the $2.81 region before trying again.
The technical window is open for a $3.30 breakout, but whether or not it occurs, buyers entering the market with greater conviction could determine how long the move lasts.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team