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For the first time since March, XRP has successfully broken above the $1.40 mark. Although it appears to be a significant change on the surface, the situation is more complicated when considering the broader context.
XRP not losing touch with market
For months, the price has been trapped in a prolonged downward trend, with persistent lower highs and strong moving average resistance. That structure has not yet completely vanished. Nonetheless, the first indications of structural improvement are being seen in recent price action.
With the help of an ascending trendline, XRP has been hitting higher lows and is currently trying to gain momentum above short-term resistance. The move above $1.40 is significant because it signifies a local breakout from compression rather than merely a chance spike. XRP has been trading in a narrow range for weeks and has consistently failed to return to this level. If it is broken, there may be less pressure to sell in the near future.
Additionally, the asset continues to trade below important dynamic resistance. Both the 50-day and 100-day moving averages are still above and continue to decline. This suggests that XRP is still functioning within a more general bearish framework, despite the breakout.
Momentum finally healing
The momentum indicators are improving. As buying pressure increases, the RSI has risen above midrange levels and is currently trending upward. During the breakout, volume has also increased somewhat, though not to levels usually linked to significant trend reversals.
Sustainability is currently the most important question. If XRP can hold above $1.40 and consolidate, the next logical target is in the $1.50-$1.55 range, where stronger resistance begins, but in case of a breakout, fresh inflows should cover XRP and fuel a rally toward $2.
If this level is not maintained, there will probably be a swift return to the prior range, which would support the notion that this was a transient breakout rather than a structural shift.
XRP is currently undergoing a transition, but it has not completely changed. Although the break of $1.40 is a positive development, the general trend has not yet reversed.
Dan Burgin
U.Today Editorial Team
