XRP Must Escape This Range Before Targeting $3: Ripple Price Insights

Ripple has hit a crucial price range between $2.3 and $2.5, with an upcoming breakout likely to set the trend. A positive breakout could lead to a continued increase, targeting the $3.1 area.

XRP Overview

Daily Chart Insights

The recent upward momentum for XRP encountered resistance at the upper edge of a long-term descending wedge near the $2.7 mark, resulting in a bearish pullback. The price is currently stabilizing within a critical and narrow range of $2.3 to $2.5, dictated by the apex of the wedge. This area has evolved into a vital conflict zone between buyers and sellers.

The ongoing pullback can also be seen as a retest of the recently surpassed 100 and 200-day moving averages, potentially rekindling market demand. A breakout from this limited range seems likely, and the direction of this breakout will probably dictate XRP’s next significant movement. A bullish breakout above $2.5 could facilitate a prolonged ascent towards the $3.1 resistance level.

4-Hour Chart Analysis

In shorter timeframes, Ripple has sustained a broader bullish structure recently, having risen above the descending wedge pattern. Nevertheless, significant selling pressure emerged near the $2.7 resistance, forcing the asset back into the wedge formation. This behavior hints at a potential bull trap and false breakout scenario.

At present, XRP is holding above the crucial support level at $2.3, where renewed buying interest could manifest. If this support level holds, a fresh bullish movement towards the $2.7 area is probable. Still, the market is poised for a decisive breakout from the $2.3 to $2.5 consolidation range.

If a bullish breakout occurs, the price may swiftly ascend toward the $3.1 resistance. On the other hand, a drop below $2.3 could lead to a sharp fall towards the $2 support, particularly if it coincides with a short-squeeze or panic selling from overleveraged long positions.