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With a steady recovery from its steep correction earlier this month, XRP is once again standing in front of a market turning point as it consolidates around the $2.66 mark. Refocusing attention on the $3 psychological level, the recent price action indicates increasing momentum and a potential transition from short-term weakness toward a renewed bullish phase.
XRP's dramatic recovery
Following a string of higher lows that suggest fresh accumulation, XRP has dramatically recovered from the $2.35 support on the daily chart. Now that it has risen above the 200-day moving average (black line) once more, the asset is testing the 50-day EMA close to $2.77, which has historically been used as both confirmation and resistance for trend reversals.
It is much more likely that XRP will sustain a rally toward $3.00-$3.10 if it can hold above this zone and secure a daily close above $2.80. Following weeks of cautious selling, there has been a slight increase in trading volume, indicating that institutional and large-holder participation is gradually returning.
XRP gets rejected?
A balanced state between buying and selling pressure is reflected by the Relative Strength Index (RSI), which is currently at 53. This is the perfect setting for a breakout attempt without overbought conditions. But investors should keep an eye on the adjacent resistance zones, which are between $2.77 and $2.90, where XRP has been repeatedly rejected in the past.
The overall bullish structure would need to hold if there was a short-term pullback toward $2.55-$2.45, which could be triggered if this area is not broken. Short liquidations and rekindled speculative demand could drive XRP’s move toward $3.00 quickly and decisively if it is able to break above $2.90.
Given that XRP frequently serves as a sentiment driver for large-cap assets, the breakout would also portend a more widespread recovery in the altcoin market.
XRP is at a crucial stage of its recovery. A confirmed breakout above $2.80 could pave the way to $3 and beyond, but if it doesn’t, there may be another consolidation phase before the subsequent leg up. The market structure indicates that momentum is beginning to shift back toward buyers.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team