XRP has defied expectations by breaking above a critical resistance level, surging past $2.7, and surpassing the 100-day Simple Moving Average (SMA).
This bullish breakout signals renewed momentum in the market as traders and investors express optimism over the altcoin’s potential for further gains. However, the key question remains: can XRP sustain this rally?
Renewed Optimism as XRP Gains Strength
After a lengthy consolidation period, XRP’s recent breakout has decisively switched the direction of market sentiment toward the bulls. The thrust through $2.7 and 100-day SMA has seen mounting buying pressure as most investors continue to anticipate higher levels if such key resistance areas are continuously being breached.
XRP’s breakout has boosted buying interest, with rising volume and bullish indicators fueling optimism for further gains. Source: Owiescott8 on TradingView
Technical indicators also confirm this shift in momentum. The Moving Average Convergence Divergence (MACD) indicator is moving higher above the zero line currently, which implies that bullish momentum is increasing in strength. This is a positive divergence, which indicates that buying momentum is increasing, which is bullish for optimism concerning XRP’s upward momentum.
Despite this optimism, volatility remains a key driver. Unless XRP holds above $2.7, short-term profit-taking could trigger a pullback. But so long as the price is above key support levels, the possibility of a sustained rally remains strong.
Key Resistance Levels to Watch
With XRP breaking $2.7, the next significant resistance level is at $2.9. A breakout above this level would solidify that bulls are in control, paving the way for further upside to the $3.4 region.
The XRP price maintains above the critical resistance around $2.7. Source: DaveTradesLive on TradingView
On the downside, breaking below $2.7 may indicate the latest breakout was not viable. On that occasion, the sellers will again be in control, dropping the price lower to lower supports. Traders will closely monitor whether $2.7 could become established as a new area of support or whether the recent rally was simply a brief flash.
Will XRP Maintain Its Bullish Momentum?
A broader view of market conditions suggests that XRP’s upward movement can be sustained. Existing data reveals a steady increase in trading volume, which justifies the claim that demand has not gone down. The On-Balance Volume (OBV) gauge of buying and selling pressure has been on the rise, indicating that buyers still keep on buying XRP even at its short-term drop.
XRP is rebounding strongly after a sharp correction, aiming for a breakout above $3. Source: FinCaesar on TradingView
Besides this, XRP’s long-term prospects appear promising in the sense that banks employ the currency to remit funds across countries. Banks and large payment processors employ XRP to exchange money quickly at minimal expense, which is one use that will continue to sustain the currency’s demand. Emerging developments and more transparent regulation, such as the implementation of XRP in exchange-traded funds (ETFs), can support its price in the long term.
Could XRP Reach $4 Sooner Than Expected?
Moving ahead, analysts are predicting that XRP could look to test higher price levels, with some setting a long-term target of $4.26. Historical price action suggests when assets reclaim important resistance levels, they tend to probe higher Fibonacci extension levels, so heading up toward $3.73 and above is on the cards.
The XRP price was at $2.76, down 0.58% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin
However, short-term consolidation cannot be dismissed. Short-term bearish divergence in the Relative Strength Index (RSI) would entail XRP being able to consolidate around $2.7 before attempting to break out again. Short-term consolidation should prove elusive because liquidity pools have signposted the next serious area at $2.86. When and if XRP is able to break above here, then it can accelerate rapidly toward more major areas of resistance like $3.37 and $3.43.
Watch – XRP Price Analysis Video
Final Thoughts
XRP’s ability to break past $2.7 and the 100-day SMA is a significant development that signals a shift in market sentiment. While some short-term volatility is expected, the overall outlook remains positive. If XRP can sustain its momentum and hold above key support levels, the altcoin could be poised for further gains, potentially reaching $4 in the coming weeks. As market conditions evolve, traders will be watching closely to see if XRP can solidify its bullish structure and extend its rally.
For XRP to go on an epic moonshot rally and ignite a broader alt season, a few simple catalysts are needed. These include confirmation that XRP is not security, spot XRP ETF approvals (currently 81% likely on Polymarket), Ripple’s involvement in the various U.S. government stablecoin initiatives, and XRP’s inclusion in an American crypto digital asset stockpile.
