XRP has climbed over 12% from its recent low, bringing fresh attention to the key resistance around $2.60. This level has repeatedly blocked bullish momentum, but the recent recovery adds pressure to the bears. Traders now watch closely to see if XRP will break out or retrace once again.
XRP Finds Strength in Recovery but Faces Resistance
After reaching a local bottom near $1.85, XRP rallied sharply and now consolidates beneath the $2.60 resistance. The daily chart shows this level as a major hurdle, where the price previously failed multiple breakout attempts. This resistance sits just above the 100-day moving average, currently at $2.52, which acts as dynamic overhead pressure.
Despite the recovery, XRP has not yet reclaimed the bullish structure from earlier in the year. The momentum appears cautious, especially as trading volume remains relatively neutral. However, the bullish presence strengthens with every retest of the support zone between $1.95 and $2.00.
Daily Chart Highlights the Battle Around Key Levels
Zooming out, the daily chart captures the broader structure since XRP’s explosive move toward $3.40 in late 2024. That level now represents the major Fibonacci 0 level and the ultimate bullish target in this structure. The price has since retraced, dipping to the critical 0.5 Fibonacci level at $1.9479 and even approaching the 0.618 mark near $1.6051.
The market currently trades between the 100-day and 200-day moving averages, signaling uncertainty. The 200-day MA at $1.74 provides deep support if bulls lose their grip. Still, XRP’s ability to stay above the 0.5 Fibonacci level gives bulls a fighting chance.
If price breaks above $2.60 with conviction, it could trigger a strong bullish continuation. Traders would then target $3.00 as the next major resistance, followed by $3.40 as the final push zone. However, failure to break $2.60 might lead to another drop, especially if price falls below $1.95.
4H Chart Reveals a Potential Breakout Pattern
On the four-hour timeframe, XRP trades within a descending triangle pattern. The lower boundary around $1.85 has offered consistent support, while the upper trendline from $3.40 has resisted several bullish attempts. This formation creates compression, hinting at a possible breakout soon.
Within this range, the $2.60 to $2.80 zone forms a strong resistance cluster. This area has rejected every breakout attempt since February, increasing its importance. If XRP breaks this zone, the next price surge could come fast and sharp, especially with volume confirmation.
On the flip side, if XRP fails to sustain above $2.50 and drops below $1.85, the bearish breakdown becomes likely. In that case, XRP might revisit $1.60, or worse, test the $1 psychological level where deeper Fibonacci support lies.
XRP’s Next Move Depends on Volume and Breakout Clarity
As XRP moves sideways between $2.00 and $2.60, the market remains on edge. A clear breakout will likely bring strong volatility. Bulls must defend the $1.95–$2.00 zone and push price above $2.60 quickly to regain dominance. Bears, however, only need a rejection at resistance and a close below $1.85 to shift momentum.
The 100-day moving average currently restricts the price from above. A strong daily candle above $2.60 and a close above $2.80 could flip the structure bullish. Traders should also monitor volume closely, as low-volume breakouts often fail to hold.
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In conclusion, XRP now faces one of its most crucial technical moments in months. The 12% recovery shows that bulls are not done yet. However, without a solid breakout above $2.60, the risk of a bull trap remains high. As price coils within the triangle, the breakout direction will likely dictate the next 20% move.
