XRP Rally at a Crossroads: Will XRP Surpass Resistance for Another Breakout?

XRP Rally at a Crossroads: Will XRP Surpass Resistance for Another Breakout?

XRP has shown remarkable strength, climbing 17% over the last 24 hours to trade between $2.37 and $2.42. As traders watch for its next move, XRP approaches a pivotal resistance zone that could determine whether it continues its rally or faces a correction.

XRP’s Technical Setup: A Closer Look

Short-Term Momentum (4-Hour Chart)

• Price Movement: XRP rebounded from its December 10 low of $1.898, supported by strong buying interest.
• Current Range: The asset is consolidating near $2.40, with waning volume indicating a pause.
• Support Levels: The 20-period EMA ($2.04978) and 30-period EMA ($1.80879) provide solid backing.
• Resistance: The 10-period SMA ($2.45043) signals near-term selling pressure.

Intraday Analysis (1-Hour Chart)

• Higher Lows: XRP continues to print higher lows, reflecting positive sentiment.
• Resistance Zone: Sellers are active between $2.474 and $2.50.
• Indicators:
  • RSI (65.35): Neutral, indicating equal potential for breakout or retracement.
  • MACD: Flashes a cautious sell signal, suggesting traders should tread carefully.

Long-Term Outlook (Daily Chart)

• Trend: XRP maintains its uptrend, with a higher low forming at $1.898 after climbing from a $0.5141 low to $2.909.
• Indicators:
  • EMAs (200-period at $0.85717 and 100-period at $1.10811) underscore long-term bullish momentum.
  • Oscillators:
    • CCI (56.48) and AO (0.85) signal neutrality.
• Volume: Declining activity during the rally indicates fading momentum.

Key Levels and Scenarios

Bullish Case

• Breakout Potential: A breach above $2.65 with strong volume could propel XRP toward $2.90 or higher.
• Support Factors: Long-term EMAs and consistent higher lows bolster the bullish narrative.

Bearish Case

• Risk of Retracement: Failure to overcome $2.65 and declining volume could lead XRP to retest support at $2.20 or $1.898.
• Critical Threshold: A drop below $2.10 may indicate a deeper correction.

Conclusion

XRP’s performance at the $2.65 resistance level will determine its next move. Traders should monitor volume and key support levels to gauge whether the crypto asset is poised for another moonshot or facing a temporary pause in its rally.