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XRP's next day will determine whether bulls can regain complete control or if bears will rule the upcoming weeks. Right below a long-term descending trendline that has capped rallies since the August peak, the price is currently consolidating around $3.04. XRP is pushing against this descending resistance on the daily chart.
The road to the next significant resistance, which is located around $3.40, will be opened by a successful breakout above $3.10-$3.15, which would validate a bullish continuation. By doing this, the consolidation phase would come to an end, and the upward trend that started in mid-July would resume. A pullback, though, might occur if the upcoming sessions fail to produce any breakthroughs.
The 50-day EMA, or $2.84, is the key support, and $2.79 is the deeper floor. The bulls’ fate would be sealed if XRP fell below these levels, invalidating the bullish breakout scenario and probably sending the price back toward the $2.55 range, which is where the 200-day EMA is located. Since volume has stayed largely unchanged, it appears that traders are awaiting confirmation before making a commitment.
Since the RSI is neutral at 56, volatility has the potential to drive the price sharply higher or lower once momentum increases. The compression of price action is what makes this moment significant. XRP has been trading in a narrowing structure, and these configurations do not usually last for very long. The next 24 hours will probably yield the pivotal move, and either a breakout or a breakdown is imminent.
The approach for investors is simple: look for indications of a breakout confirmation at $3.10-$3.15, and a breakdown trigger at $2.79-$2.84. The short- and possibly medium-term trajectory of XRP will be determined by which side gives way first. The market has given XRP a pivotal moment. The bears are still not far behind, but bulls have one last chance to gain ground.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team