XRP is testing key resistance levels, with analysts eyeing a potential breakout toward $2.70. Broader market factors include recent ETF outflows and rising exchange reserves, impacting liquidity. A confirmed breakout could signal a significant rally, though resistance levels must be cleared.
What to Know:
- XRP is testing key resistance levels, with analysts eyeing a potential breakout toward $2.70.
- Broader market factors include recent ETF outflows and rising exchange reserves, impacting liquidity.
- A confirmed breakout could signal a significant rally, though resistance levels must be cleared.
XRP is currently trading around $1.89, facing resistance after a recent pullback. Analysts are closely monitoring the $1.80 support level, which has held firm over the past year. Technical patterns suggest a potential breakout, but confirmation is needed to validate bullish targets.
$1.80 Support in Focus
XRP has consistently defended the $1.80 level, using it as a base for multiple rebounds. Chart analysis indicates the price is currently within a descending channel, testing upper resistance. According to analyst ChartNerd, a successful defense of $1.80 could lead to a breakout and a rally towards $2.70. A confirmed close above this resistance would signal a shift back to higher price levels.
Long-Term Pattern Emerges
A broader, multi-year chart pattern shows similarities to the 2015-2017 cycle. This pattern includes an ABC correction ending in a Fibonacci demand zone before a breakout. If the current structure mirrors this historical pattern, projections point to a potential move as high as $27. Early signs of strength are visible, but the breakout level remains a critical hurdle.
Triple Bottom Formation
Another chart shared by Egrag Crypto highlights a triple bottom formation. This pattern consists of three lows forming around the same level, indicating a strong support zone. With the price currently moving just below a resistance line, a breakout could trigger upward targets of $2.7, $9, $15, and $32, based on past price extensions.
ETF Outflows and Exchange Reserves
Spot XRP ETFs have experienced $40.6 million in outflows over the past week, marking the first weekly net outflow since their launch. Despite this, total net inflows remain at $1.23 billion, with the funds holding $1.36 billion in assets under management. Meanwhile, Binance’s XRP reserves have increased to 2.74 billion tokens, the highest level since November, suggesting a return of liquidity to the exchange.
In conclusion, XRP is at a critical juncture, testing key resistance levels while maintaining support. Technical patterns suggest a potential breakout, but confirmation is necessary. Market participants should monitor price action closely to gauge the likelihood of a sustained rally.
Related: XRP: Crypto CEO Reveals Key Financial Targets
Source: Original article
Quick Summary
XRP is testing key resistance levels, with analysts eyeing a potential breakout toward $2.70. Broader market factors include recent ETF outflows and rising exchange reserves, impacting liquidity. A confirmed breakout could signal a significant rally, though resistance levels must be cleared.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
