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After weeks of consolidation, XRP has been steadily gaining momentum and maintaining a cautious but positive trading pattern, holding steady around the $3.00 zone. The technical setup indicates that XRP might still be getting ready for a covert recovery, which could eventually push it toward the $4.00 mark, despite the token having experienced numerous rejections over the last two months.
XRP's recovery close?
The fact that XRP has risen above its descending resistance trendline on the daily chart suggests that sellers might be losing ground. With the 50-day EMA at $2.97, the 100-day EMA at $2.87 and the 200-day EMA at $2.56, the price is currently consolidating above these important moving averages. The safety net offered by this layered support may help the subsequent leg go higher.
With an RSI of 52, the market is in a neutral state, with potential for growth if bullish pressure builds.
In order for XRP to recover $4, buyers must first break through the short-term resistance level of $3.20, which capped the previous recovery attempt. A significant break above that level might pave the way for a retest of the $4.00-$4.20 range and a move toward $3.50. In addition to a more encouraging overall cryptocurrency market, this scenario would probably call for fresh inflows either from institutional or retail momentum.
What comes below $3?
There are risks to the downside if XRP does not rise above $3.00. The $2.81-$2.87 zone would come into focus if the 50-day EMA dropped below it, and a deeper decline would test the 200-day EMA at $2.56. Any significant attempt at $4 would be delayed if XRP were to lose this level, which would weaken the bullish argument and force the cryptocurrency back into protracted consolidation.
Although XRP is not in full breakout mode, it is no longer bleeding lower, which indicates that the market is in balance based on the current price action. The $3.20 level is at the "crossroads" level because a breakout there might be the catalyst for XRP’s eagerly anticipated move to $4. Until then, as XRP subtly prepares for its next major move, patience will be crucial.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team