XRP Price Outlook: Will $1.5 or $3 Come First in 2024?

XRP is starting to break free from its recent stretch of low volatility and directionless trading, sparking renewed interest in its future trajectory. Market participants are closely watching for signs of a potential bullish shift, though significant resistance levels could still pose a challenge moving forward.

The USDT Pair: Testing Key Breakout Zones

On the daily chart of XRP/USDT, the cryptocurrency recently rebounded after sweeping sell-side liquidity below the $2 threshold. This shakeout was followed by a large bullish engulfing candle, pointing towards strong institutional interest accumulating at those levels.

Following this bounce, XRP managed to reclaim the 100-day moving average—a sign of strengthening momentum. Now, it faces a critical test as it approaches the 200-day moving average, aligning with the downward trendline of a long-standing descending channel. This confluence lies near the $2.40 mark.

Should XRP decisively push past this resistance zone, the path toward the $3 region opens up. Continued buying strength could even drive the asset into the major supply zone surrounding $4. However, a failure to overcome this technical structure might result in a reversal back to the $1.60 demand level. If XRP revisits that area without securing a new higher high, the prevailing trend will remain bearish.

The Relative Strength Index (RSI) currently stands at 58, which supports the idea of further short-term gains. However, it also suggests that the market hasn’t entered overbought conditions yet, leaving room for either continuation or reversal depending on price action at resistance.

The BTC Pair: Awaiting Breakout Confirmation

Looking at the XRP/BTC pair, the token remains within a descending wedge pattern. Price action currently hovers just below the upper boundary of this formation and a significant resistance zone near 2100 SAT. This key area is reinforced by both the 100-day and 200-day exponential moving averages, which add to the complexity of a clean breakout.

Despite making several attempts to rise above this level, XRP/BTC has yet to deliver a confirmed breakout with solid daily closes. As such, the broader downtrend and wedge pattern are still dominant technical features for this trading pair.

Should the price face rejection here, a further decline toward the lower wedge support near 1800 SAT could unfold. Meanwhile, the RSI for this pair is balanced around the neutral 50 range, signaling a lack of clear market bias. This underscores the importance of a decisive breakout—or breakdown—in determining XRP’s trajectory relative to Bitcoin in the coming weeks.

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

In summary, XRP’s future direction hinges on a few pivotal technical areas. Bulls will need to push through multiple resistance levels to initiate a confirmed uptrend. Otherwise, the risk of short-term pullbacks remains on the table, making the current price region strategically significant for both short-term traders and long-term holders alike.