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XRP is finally exhibiting indications of upward momentum following weeks of weak consolidation and rejection-heavy activity. After a strong recovery from the 200 EMA around $2, the asset is currently attempting to reach the 100 EMA resistance level, a crucial technical turning point that might open the door to a run toward $3. The graph presents an optimistic but cautious picture. XRP has been stuck in a downward channel and has been printing lower highs ever since it peaked at $3.
The recent recovery and the attempted breakout above the 100 EMA, however, point to escalating bullish appetite at this level. The setup is unquestionably leaning toward a breakout scenario even though the price is still teasing resistance from the triangle's upper trendline and the 100 EMA. Around the $2.15-$2.22 region, the 50, 100 and 200 EMA confluence serves as a zone of confirmation and resistance.
The breakout is technically legitimate if XRP closes above this cluster with any kind of volume support. The next obvious upside targets are $2.60 and $3.00, which are significant from a structural and psychological standpoint. Declining volume, however, is one element that could postpone this bullish push. Even though the price has recovered, volume is still declining. This divergence frequently indicates that market participants may not be convinced by the move.
In other words, although they are not yet acting with overwhelming force, bulls are stepping up. But XRP has a history of exploding from periods of quiet accumulation and the current compression close to the peak of its descending structure could cause a spike in volatility. If bulls are favored by that spike, a jump to $3 is not out of the question.
The main point is that XRP is attempting to reverse the trend and is testing crucial levels. The value of $3 becomes more than just a possibility if customers come back in large numbers. However, this could just be another unsuccessful breakout attempt without that push. Pay attention to that volume and the EMAs.
Vladislav Sopov