Ripple (XRP): Will History Repeat to New ATHs?

What to Know:

• XRP is currently trading near a key support level of $2.17, a zone that historically preceded significant rallies.
• Analysts are closely monitoring XRP’s price action within a defined range, awaiting a breakout above $3.31 or a breakdown below $1.99 to signal the next major move.
• Despite recent price pullbacks, on-chain data reveals substantial new XRP wallet growth, suggesting continued interest and potential accumulation.

Ripple’s XRP is currently navigating around $2.17, testing a critical support level that has historically acted as a springboard for upward movement. This zone is under close observation by analysts, who are keen to see if it can once again serve as a foundation for a substantial rally. The potential for both upside and downside scenarios makes this a pivotal moment for XRP traders and investors.

Analysts have identified a familiar pattern with XRP revisiting the mid-regression band of the Growth Curve, a level that supported the breakout in July 2024. This level, between $2.00 and $2.20, is being watched for signs of buyer accumulation, with long wicks on recent candles hinting at potential support. Stability in this range is crucial for establishing a solid base.

“Unless the structure is broken,” they said, “this silence will trigger a new leg.”

Short-term charts present a mixed outlook, with resistance at $2.75 and support at $2.00, indicating a need for a mature chart formation before decisive action. A break above the daily high could lead to $3.65, while a drop below $2.30 may trigger short positions, reflecting the current uncertainty in the market. Traders are advised to remain vigilant and await clearer signals.

Despite recent price corrections, on-chain metrics indicate a surge in new XRP wallets, with over 21,595 created in just two days, marking an eight-month high. This wallet growth suggests continued interest and potential accumulation, contrasting with reports of large holders moving coins to exchanges. This divergence in on-chain activity adds complexity to the current market outlook.

In conclusion, XRP’s current position near a key support zone presents both risks and opportunities for investors. Monitoring the price action within the defined range and keeping an eye on on-chain activity will be crucial for making informed decisions.

Source: Original article