XRP has shown a notable increase in price recently, currently standing at $2.84, which reflects a rise of 1.12% over the last 24 hours. The cryptocurrency boasts a daily trading volume exceeding $2 billion and a total market capitalization of approximately $169 billion.
Market analysis indicates that XRP is forming a symmetrical triangle pattern, a chart formation often associated with potential breakouts following periods of consolidation. Currently, support for XRP rests at $2.76, while resistance is identified at $2.95. The convergence of the 50-day and 200-day Exponential Moving Averages (EMAs) at around $2.82 and $2.88, respectively, is particularly critical, as these are key points traders typically monitor for crossover signals.
Since early September, XRP has been displaying a pattern of higher lows, indicating increasing buying pressure. However, traders should be cautious of a descending trendline established in late August, acting as a resistance threshold that will determine the cryptocurrency’s next significant movement.
Key technical indicators favor a bullish outlook, with the Relative Strength Index (RSI) positioned at 58 and demonstrating upward momentum. Recent candle formations have presented small-bodied indecision candles, followed by stronger bullish closes, suggesting potential bullish momentum akin to the “three white soldiers” pattern.
Traders are advised to keep an eye on critical levels. A bullish trigger could be initiated if XRP breaks above $2.88, pointing towards targets of $2.95 and $3.04. Conversely, a bearish risk could become apparent if the price falls below $2.76, in which case the next support levels might be $2.70 and $2.63.
For those new to trading XRP, the chart presents both bullish and bearish scenarios. In a bullish setup, one might enter a long position above $2.88, setting a stop-loss beneath $2.76 and targeting upward movements. In contrast, should XRP display a rejection at the resistance level with a bearish engulfing candle, short positions could be considered, targeting descending support levels.
This technical environment highlights a squeeze setup, where the price is coiled and momentum is building, suggesting that an imminent breakout will determine the future trajectory of XRP.
