XRP Rally Signals Strength Despite $2.30 Pullback

XRP recently experienced a dramatic surge toward the $2.30 mark, followed by an immediate rejection. Although it may appear as a setback, this market movement reveals underlying strength and continued bullish potential for Ripple’s native token.

Since April, XRP has remained in a tight consolidation range, consistently hovering between $2.00 and $2.10. Throughout this period, the asset struggled to overcome key resistance levels, particularly the 100-day and 200-day exponential moving averages (EMAs). However, the latest price action shows that XRP briefly surged above the 50, 100, and 200 EMAs before facing resistance and retracing.

This rapid pullback might seem discouraging on the surface, but a closer look paints a more optimistic picture. The volume spike that accompanied XRP’s breakout attempt suggests more than just thin liquidity—it indicates that buyers are actively waiting on the sidelines, ready to re-enter the market when favorable conditions arise.

The rejection at $2.30 also exposed a vital aspect of the token’s technical setup. Although XRP couldn’t hold above this key level, the fact that it reached and briefly surpassed major resistance confirms renewed buying interest. This upward momentum reflects renewed optimism among investors and traders alike.

Another bullish signal lies in XRP’s price pattern behavior, which suggests the market is clearing out weak hands. By shaking off speculative positions through this fakeout, XRP could be setting the stage for a more sustainable rally as stronger bids re-enter the market.

One of the more intriguing aspects of this development is the Relative Strength Index (RSI), which has now moved into the mid-50 range. This shift from a previously neutral or bearish stance indicates improving market sentiment. RSI values suggest growing strength behind XRP’s price action, adding another layer of credibility to the possibility of an upcoming bullish phase.

Besides the RSI, broader structural support remains intact. XRP continues to trade above its 200-day EMA, a significant foundational level that has supported its price trend over the last several months. Remaining above this line typically suggests a long-term uptrend is still in place, even amidst short-term volatility.

Moreover, recent large transactions, such as the $56 million XRP inflow to Coinbase, highlight sustained institutional interest. These movements validate that XRP remains a strong candidate among large-cap cryptocurrencies, despite momentary market shakeouts.

In conclusion, the supposed failed breakout to $2.30 isn’t a sign of weakness but rather a healthy retest. It demonstrates that XRP still has active participants ready to accumulate when prices dip. As long as XRP maintains territories above key EMAs and continues attracting volume, its bullish structure remains intact.

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

Traders should approach with caution until there is a definitive breakout above $2.30. However, this recent price behavior confirms that XRP is far from losing traction in the crypto market narrative.