XRP Nears Key Turning Point Amid Sideways Trading

XRP continues to show signs of consolidation as it moves within a defined range, holding steady even as Bitcoin and Ethereum capture mainstream attention with their recent price action. While XRP isn’t demonstrating strong bullish energy at the moment, it does appear to be maintaining crucial support levels, setting the stage for a possible breakout or breakdown in the near future.

Technical signals indicate that XRP may be approaching a critical phase. The directional decision it takes next could significantly shape its medium-term momentum, against both the US Dollar and Bitcoin.

Technical Insights

XRP/USDT Overview

Looking at the daily chart, the XRP/USDT pair remains within a prolonged descending channel. This structure is characterized by a downward-sloping resistance from the yearly peak and a firm horizontal support around the $1.95 level. The current trading zone is approximately $2.15, which keeps the asset below both its 100-day and 200-day moving averages — a technically sensitive area that often defines momentum.

The Relative Strength Index (RSI) hovers near 44, reaffirming the overall lack of momentum. The current price activity suggests XRP is coiling above a notable liquidity zone. If bearish pressure manages to push the price below $1.95, it could potentially drop to the next demand zone near $1.60.

On the flip side, resistance is situated near the upper edge of the channel around $2.60. This level has seen multiple rejections over recent weeks, highlighting its significance. A convincing break and sustained daily close above this resistance would confirm a possible shift to a bullish phase, with targets near the $3 mark. Until that happens, however, XRP favors range-bound plays rather than strong trend-following movements.

XRP/BTC Outlook

Against Bitcoin, XRP continues to exhibit weakness, a pattern that emerged back in March and has since evolved into a series of descending price formations. This pattern is forming a sizeable descending wedge, with the asset now gravitating toward the lower end of that formation.

The technical backdrop reinforces the bearish nature, as both the 100-day and 200-day moving averages are trending downward following a bearish crossover. The RSI in this pairing is subdued near 42, a sign of continued underperformance relative to Bitcoin.

The current trajectory is drawing XRP toward a fair value gap (FVG) left during the strong rally in late 2024. This zone, found slightly below 1900 SATs, may serve as an area of interest for both traders and algorithms due to its historical liquidity significance. If bulls step back in, the first key resistance would be near the upper trendline of the wedge, around 2200 SATs. This mark also aligns with a key horizontal resistance level and would need to be cleared to shift short-term sentiment in XRP’s favor.

However, until XRP manages to break out of the current wedge configuration, the bearish tone will likely persist across the XRP/BTC chart.

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

Despite current limitations in upside strength, XRP is approaching a pivotal technical juncture that could determine its next major move. Whether it breaks higher or continues downward, traders should keep a close eye on volume patterns and price behavior around key resistance and support levels.