XRP Struggles to Hold $2.50 – Will Buyers Force a Break Above $3?
As XRP tests critical support at $2.50, traders eye resistance at $2.85. Can the bulls regain strength and push toward $3.00, or is a bearish breakdown looming? | That's TradingNEWS
XRP Price Analysis: Can Bulls Regain Control After the Recent Pullback?
XRP Faces Volatility Amid Market Optimism and Regulatory Uncertainty
XRP’s price action remains highly volatile, with the token surging to $2.8231 before facing a sharp retracement to $2.6781, marking a 4.11% decline. Despite this pullback, XRP has managed to hold above key support levels, signaling that buyers are still present in the market. The recent price movement suggests a short-term exhaustion of bullish momentum, but the broader trend remains intact. If XRP stabilizes above $2.50, it could act as a launchpad for another leg higher, while a break below this level could trigger a deeper correction toward $2.30.
Technical Breakdown: Is XRP Preparing for a Bigger Move?
XRP remains in a long-term uptrend but is currently consolidating within a descending wedge pattern, a structure that often precedes a bullish breakout. The critical resistance area at $2.82–$2.85 continues to cap upside momentum, preventing a sustained move higher. A decisive breakout above this region could propel XRP toward the psychological $3.00 mark, with extended targets at $3.20–$3.30. On the downside, key support sits at $2.50, a level that previously acted as resistance before flipping into a potential demand zone.
From a Fibonacci retracement perspective, XRP’s recent retracement has found temporary support near the 38.2% retracement level at $2.58. The 50% retracement at $2.75 aligns with immediate resistance, while the 61.8% level at $2.91 could act as the next breakout target if buyers regain strength.
Moving Averages Confirm Bullish Structure
XRP is still trading above all major Exponential Moving Averages (EMAs), reinforcing the broader bullish trend. The 20 EMA at $2.43, the 50 EMA at $2.48, and the 100 EMA at $2.51 offer layered support, with the 200 EMA at $2.52 serving as a final cushion before potential breakdowns. The wide gap between the 20 EMA and the current price suggests the possibility of a short-term correction, with $2.50 acting as a key pivot zone.
Momentum Indicators: Is XRP Overheated?
The Relative Strength Index (RSI) has cooled from an overbought level of 85 down to 65.52, indicating that the token is still in bullish territory but approaching neutral conditions. A reading above 60 generally supports continued upside, but if RSI drops below 50, it could signal weakening momentum.
The Bollinger Bands show increased volatility, with XRP recently breaching the upper band before pulling back. The middle band (20-day SMA) at $2.3096 is acting as a dynamic support level. If XRP remains above this level, it could consolidate before another rally. However, a break below the middle band could expose prices to further downside risks, potentially testing the $2.00–$2.10 range.
The MACD indicator remains in bullish territory, with the MACD line at 0.1334 above the signal line at 0.0558. However, a contraction in the histogram could indicate a slowdown in bullish momentum, warranting caution.
Whales and Institutional Buyers: Is XRP Gearing Up for a Major Rally?
Whale accumulation remains a key driver behind XRP’s price action. On-chain data suggests that large wallet holders have been accumulating XRP during price dips, indicating confidence in the token’s long-term potential. The influx of institutional interest, particularly in light of Ripple’s legal victory against the SEC, has further strengthened bullish sentiment.
Meanwhile, speculation around the U.S. Strategic Crypto Reserve, which includes XRP alongside Bitcoin, Ethereum, Solana, and Cardano, has sparked renewed interest in the token. If the U.S. government follows through with accumulating digital assets, XRP could see a surge in demand from both institutional and retail investors.
Regulatory Outlook: Could XRP Face Headwinds from the SEC?
Despite its recent gains, XRP remains in a precarious position due to ongoing regulatory uncertainties. The SEC’s lawsuit against Ripple has been a long-standing overhang on the token’s price. However, with the possibility of a more crypto-friendly leadership at the SEC, the regulatory outlook for XRP may improve. A favorable resolution to Ripple’s legal battle could provide the catalyst needed for a sustained rally above $3.00.
Short-Term Trading Strategy: Breakout or Breakdown?
Traders should closely watch the $2.50 support level and $2.85 resistance for confirmation of the next major move. A breakout above $2.85 could fuel a push toward $3.00, while failure to hold $2.50 could trigger a correction toward $2.30. Volume confirmation and RSI cooling toward 55–60 would provide a healthier setup for sustained upside.
For now, XRP remains in a bullish trend but faces critical resistance ahead. A sustained move above $3.00 could open the door for a rally toward $4.26, while a break below $2.50 could see the token retesting lower levels. With regulatory developments and market sentiment playing a crucial role, XRP’s next move will depend on whether buyers can regain control or if selling pressure intensifies.
