Analyst Advises Monitoring This Threshold

The price action of XRP recently encountered a setback at $2.35, followed by a rebound at $2.15. This resistance comes after a brief surge during the last week of April, where it notably surpassed a downward-sloping trendline that has shaped its trajectory since early January 2025. Despite this setback, the reattempt at the trendline is viewed as a foundation for a possible breakout beyond $4, rather than an outright rejection.

Focus on Trendline Breakout and Swing Failure Pattern

A technical review on the TradingView platform indicates that XRP/USDT is currently challenging a critical descending trendline on the daily candlestick chart. This trendline has been pivotal in directing the bearish trend since January 2025 and has caused significant price rejections in February and March. However, the recent contact with this line appears to signify a potential shift from producing lower highs to initiating a breakout and retest phase.

Related Analysis

A key aspect of this breakout attempt is the series of events leading up to it. XRP initially rallied in late April, crossing above the trendline. Instead of collapsing back into the prior range, it experienced a slight pullback, resulting in a higher low, which is a significant structural shift within the bullish interpretation of a swing failure pattern (SFP).

The formation of a failed low subsequent to the breakout suggests a reversal of the prior downtrend, validated by XRP closing on April 30. As depicted in the following chart, this swing failure pattern has turned bullish, with an increase in volume indicating an early sign of a rebound and potential rally.

Moreover, the trendline has been engaged multiple times over the preceding five months, underscoring the significance of a confirmed close above it. The white arrow marked on the chart illustrates the anticipated direction of XRP’s price if the bounce is maintained.

$3.00 Resistance is Crucial for Price Explosion

A positive daily closing above this trendline would invalidate the bearish framework that has defined XRP’s pricing since the beginning of the year. Achieving this would pave the way for XRP’s price to potentially rise above $4, assuming all conditions align favorably.

Related Analysis

Nevertheless, the analyst emphasizes that the critical immediate level to monitor is the $3.00 resistance. A daily close above this psychological threshold, coupled with a notable volume increase, could facilitate XRP’s ascent toward the next significant levels.

These levels include $3.31, which corresponds to the peak on January 16, marking the next clear liquidity point. Following that, the next target would align with its current all-time high, and beyond that, $4.6209 represents the next long-term breakout objective.

As of the latest update, XRP is trading at $2.20.