XRP recorded a sharp rebound this week after falling to a low of $1.61 during a broader crypto market downturn. The token quickly recovered to around $1.91, gaining over 7 percent in 24 hours, according to CoinMarketCap.
Despite the upward movement, market analysts remain cautious as XRP faces multiple resistance levels that could affect the rally’s momentum. A strong psychological resistance exists at the $2 level alongside the stiffer resistance provided by the 20-day Exponential Moving Average at $2.14.
A breakout above $2.14 accompanied by high trading volume could progressively unlock the opportunity for XRP to reach $2.50. A sustained momentum increase could facilitate XRP breaking through to $3 from its current position.
Price rejection and sustained selling pressure will occur if investors fail to break through these critical levels.
Meanwhile, a major whale transaction has added to concerns among traders. According to Whale Alert, a Ripple-linked wallet moved 200 million XRP worth over $355 million to Binance. Large transfers to exchanges often precede selling activity, which could introduce more short-term volatility.
Also Read: Bullish Signs: Here’s How Soon XRP Could Hit $27, Popular Analyst Reveals
Here’s What XRP Holders Should Know About Current Technical Patterns
XRP’s technical indicators are sending mixed signals, which could influence the asset’s next direction. On the daily chart from TradingView, XRP is currently positioned near the lower Bollinger Band following a recent bearish breakout.
Source: Tradingview
Price movement indicates consolidation extends further as it trends toward the bottom. The Relative Strength Index shows 35.12 levels, confirming that sellers maintain market dominance. Current analysis of the RSI graph reveals weak conditions for buying pressure.
Analysts warn that key support lies at $1.80, which has become a critical level for bulls to defend, as a break below it could trigger a decline toward $1.30. Crypto analyst Ali Charts predicts that a price drop would validate a bearish head-and-shoulders pattern.
Source: Ali-chart
The pattern showcases market reversal, which indicates a potential start of an extended correction should it be validated. According to analyst Dark Defender’s insights, the monthly support level at $1.8815 remains intact. The support at $1.8815 stabilizes XRP when market fluctuations remain consistent.
For XRP holders, the coming days are essential, as a break above the $2.14 resistance with convincing strength could trigger a fresh rally. However, short-term losses could extend if the price stalls or breaks below support.
Conclusion
XRP’s recent rally is facing crucial technical and market-driven challenges. The behavior around resistance levels and the impact of whale movements will shape the coin’s near-term direction. XRP holders are advised to closely monitor the key price zones and chart patterns, as they may determine whether the rally can sustain or reverse.
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