XRP: Bulls Target Key Level

What to Know:

• XRP has rebounded alongside the broader crypto market, yet it lags behind other major cryptocurrencies.
• The recovery follows a period of extreme fear, with the current price action encountering resistance at key technical levels.
• XRP’s struggle to outperform Bitcoin highlights potential liquidity shifts and investor sentiment.

XRP has experienced a notable bounce, mirroring the positive momentum across the cryptocurrency market. However, the asset’s performance suggests it is trailing rather than leading the recovery. After a squeeze on short positions and a shift from extreme fear to neutral sentiment, XRP is now facing resistance at critical higher-timeframe levels and moving averages.

USD Chart Analysis

On the daily XRP/USD chart, the price has encountered resistance around the $2.00 mark after a sharp rebound from the $1.80 support zone. The 100-day moving average has already rejected the price, with the 200-day moving average looming above as further resistance. This configuration suggests a continued bearish structure in the medium term. The Relative Strength Index (RSI) briefly entered overbought territory and is now trending downward, reinforcing the notion of a relief rally reaching its peak.

However, if XRP can maintain its position at or slightly above the $2.00 level, it could consolidate before attempting to breach the $2.40 resistance zone. A decisive daily close above $2.40 would signal a potential shift in momentum back in favor of buyers.

XRP/BTC Pair Underperformance

The XRP/BTC pair reveals a clear underperformance relative to Bitcoin. After a rejection from the 2,500 satoshis supply zone, the price has retreated to around 2,180 satoshis. The failure to sustain above both the 100-day and 200-day moving averages, now acting as resistance, further underscores this weakness. The recent false breakout above these moving averages, followed by immediate selling pressure, suggests distribution, with liquidity being seized at higher levels before the asset was pushed back into its previous range.

Key Support Levels

The critical support level to monitor is the 2,000 satoshis area. As long as this level remains intact, XRP may continue to trade sideways against Bitcoin, consolidating recent movements. A strong daily close above the 100-day moving average, followed by reclaiming the 2,500 satoshis level, would be necessary to indicate that XRP is genuinely gaining strength relative to Bitcoin. Currently, this scenario appears unlikely.

Market Structure and Liquidity

The observed price action highlights the importance of liquidity dynamics and market structure in XRP’s performance. The rejections at key moving averages and resistance zones suggest that sellers are actively defending these levels, preventing significant upward momentum. This behavior could be influenced by various factors, including institutional selling pressure or shifts in investor preferences toward other cryptocurrencies like Bitcoin and Ethereum.

Potential Catalysts

Looking ahead, several factors could potentially influence XRP’s price trajectory. Developments in Ripple’s ongoing legal case with the SEC remain a key catalyst. Positive outcomes could significantly boost investor confidence and liquidity, while negative developments could further weigh on the asset’s performance. Additionally, broader market trends, such as the approval of Bitcoin ETFs or shifts in macroeconomic conditions, could also impact XRP’s price dynamics.

Conclusion

While XRP has participated in the recent market rebound, it continues to face significant resistance and underperforms compared to Bitcoin. Key support levels and moving averages will dictate near-term price action. Traders and investors should closely monitor these levels and broader market developments to assess the potential for future gains.

Related: XRP Forecast: Validator Signals 2026 DEX Target

Source: Original article