XRP Awaits Breakout as $2.20 Resistance Holds Firm

XRP has entered a phase of calm after a volatile start to the week, as the digital asset faces a strong resistance barrier at $2.20. Despite recent price recovery, XRP’s momentum appears to be stalling just below a crucial level, leaving traders on edge about the next significant movement.

Following a steep four-day decline that bottomed out at $1.90, XRP found new footing on Sunday. Buyers quickly stepped in, initiating a rebound that saw the token climb 10% on Monday alone. That upward push carried over into Tuesday, where XRP touched $2.20 before encountering intense selling pressure from short-term traders.

At the latest check, XRP is hovering slightly below that ceiling at $2.18, marking a small 0.6% pullback in the past 24 hours. This price stalling has coincided with a noticeable decline in market activity. According to recent data, XRP’s daily trading volume dipped by 45.22%, settling at $2.79 billion. This sharp fall in volume underlines a cautious mood among investors, with neither bulls nor bears making decisive moves.

Technical analysis offers a mixed outlook for XRP. Presently, the Relative Strength Index (RSI) indicates a neutral position, suggesting the market isn’t strongly favoring buyers or sellers. This middle-of-the-road technical setup contributes to the sense that XRP is in a holding pattern, waiting for the next catalyst to provide direction.

Should XRP manage to decisively break through the $2.20 barrier, analysts identify the next targets at $2.26 and $2.37. These levels correspond with the 50-day and 200-day Simple Moving Averages, respectively. A further push beyond those averages could set the stage for XRP to test the $2.50 zone and possibly challenge $2.65, a psychological threshold eyed by market participants.

However, failure to maintain support above $2.00 raises the possibility of a deeper pullback. In such a scenario, the token may retest levels around $1.75 or even lower, especially if the market continues to see subdued trading volumes and bearish sentiment gains traction.

Amid this market lull, there has been a notable development on the technological front for XRP. The XRP Ledger recently underwent a major enhancement with the release of Rippled version 2.5.0. This upgrade introduces new capabilities, such as batch transactions, token escrow for IOUs, and additional support for Multi-Purpose Transactions (MPT). These features aim to broaden the XRPL’s functionality and appeal to a wider range of enterprise use cases.

Even as XRP consolidates beneath resistance, these underlying improvements to the network infrastructure could provide the long-term momentum needed to fuel future rallies. For now, the market remains locked in a state of anticipation. Traders are watching closely for any signs of a breakout or breakdown, aware that current price behavior could soon give way to a swift and meaningful shift.

With indicators sitting on neutral ground and sentiment hovering in a wait-and-see zone, XRP’s next move may hinge on broader market forces or a return in trading volume. Whether bulls or bears gain control, what’s clear is that XRP’s quiet phase could be setting the stage for a dramatic move on the horizon.

Related: Expert Advice: Sell XRP If You’re Confused

For further insights on XRPL’s latest upgrade features, you can explore this announcement: XRP Ledger’s Major Upgrade.