XRP Eyes $3 as Bullish Breakout Shocks Market: Key Levels to Watch

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XRP has stunned traders with an unexpected bullish turnaround just days after slipping below the critical $2.00 level. This decline had triggered widespread concerns of a deeper correction. However, XRP has now gained nearly 10% within 24 hours, reclaiming the $2.10 level and setting its sights on short-term resistance zones.

Technical indicators reveal that the asset is now testing the 26-day Exponential Moving Average (EMA), which has acted as a strong dynamic resistance since mid-May. A confirmed breakout above this EMA would likely kickstart a fresh uptrend, potentially propelling XRP to $2.30 and even $2.50 in the near term.

Bullish Volume and RSI Momentum Strengthen the Case

Previously, XRP displayed a string of lower lows, continuously testing the 200-day moving average, raising fears that the asset could tumble further. Sentiment hovered on the edge of collapse. However, strong buying activity during the bounce has changed the narrative.

Volume surged during the recent recovery, indicating robust support behind the move. At the same time, the Relative Strength Index (RSI) has begun to climb, now sitting at 49. The rising RSI indicates that bulls are actively entering the market and driving prices higher.

Wedge Breakout Confirms Trend Shift

Perhaps the most crucial development is XRP’s breakout from the descending wedge pattern that had trapped it for weeks. This formation, which previously signalled bearish pressure, has now been invalidated with an upside breakout, signalling a shift in trend.

If XRP manages to hold above the 26-day EMA, it could spark a broader rally. The next level of resistance lies at the 50 EMA, near $2.23. A decisive move beyond that could clear the path to $2.50.

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Is $3 Now Within Reach?

Should broader market conditions remain stable, analysts believe XRP has the potential to test the $3 mark. A sustained close above $2.23 would likely build the momentum needed to target previous 2025 highs.

This recovery marks a significant overhaul of sentiment. What once appeared to be a prolonged downtrend has now transformed into a potential bullish breakout. If XRP maintains its footing above key moving averages, the coming sessions may bring a powerful upward extension.