XRP continues to captivate traders and investors, holding steady in a critical decision-making zone despite turbulence across the broader cryptocurrency market. With its price hovering near a descending trendline, XRP is positioned for a potential breakout above its crucial resistance range of $2.50 to $2.60. This move could mark the beginning of a renewed rally for the altcoin, which has managed to retain the bulk of its remarkable 300% gains from late 2024.
XRP Holds Steady Amid Market Sell-Off
Amidst a sharp sell-off impacting major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), XRP has demonstrated resilience by maintaining a firm position above the $2.30 mark. This level represents the point of control (POC) for XRP, where trading volume has been most concentrated since December 1, when the altcoin decisively breached the $2 threshold. Remaining above this POC highlights sustained bullish sentiment in XRP’s price action.
Technical Patterns Signal Potential Breakout
Traders analyzing XRP’s 4-hour chart have identified a triangle or pennant formation—an indicator often associated with bullish continuations in uptrending markets.
Valeriya, a seasoned forex and crypto trader, emphasized the importance of the $2.15 to $2.20 support zone. According to Valeriya, this area serves as a key decision point:
“If the support zone resists, aggressive growth is expected with the nearest target of $2.91, where the liquidity of sellers is concentrated.”
Similarly, analyst Daan Crypto highlighted XRP’s historical respect for technical levels, underscoring its appeal to traders. With converging trendlines and strong support above the 200-day EMA, XRP’s market structure indicates bullish potential for the near term.
Liquidity and Sentiment Bolster Optimism
From a liquidity standpoint, XRP is targeting the $2.42 to $2.50 range. Clearing this resistance could trigger a rally toward $2.90, where seller liquidity is concentrated, setting the stage for a potential new all-time high.
On the sentiment side, XRP’s ecosystem has seen several positive developments, driving renewed investor confidence. Ripple’s president has hinted at the imminent approval of an XRP spot ETF, a milestone that could significantly bolster institutional demand. Adding to the optimism, Ripple CEO Brad Garlinghouse was recently photographed with President-elect Donald Trump, sparking speculation about potential political backing for Ripple’s initiatives.
Santiment data reflects this growing optimism, with XRP’s positive sentiment score on the rise. While sentiment hasn’t returned to the peaks of November 2024, the current trend aligns with the technical signals pointing to a potential breakout.
Key Levels to Watch
For XRP to confirm its bullish trajectory, it must secure a daily breakout above the $2.50 to $2.60 resistance levels. This achievement would likely clear liquidity above, enabling a surge toward $2.90 and beyond.
However, a failure to hold the $2.15 to $2.20 support zone could expose XRP to downside risks, underscoring the importance of monitoring these critical levels as the market moves forward.
With XRP’s price action consolidating in this pivotal zone, traders and investors alike are watching closely to see whether the altcoin can leverage its bullish momentum to achieve new highs.
