- XRP has essential resistance at $2.22 and support at $1.99, which is creating a technical squeeze.
- The breakout higher than $2.31 may indicate the reversal of the trend to $3.00.
- Regulatory certainty and SEC lawsuit progress drive bullish sentiment in the price of XRP.
XRP is trading just below a key descending resistance line, forming a tense technical pattern. Currently valued at $2.15, the token is navigating a narrow range defined by firm overhead resistance at $2.22 and crucial support from the 200-day EMA at $1.99.
The token is technically squeezed between the strong resistance level of $2.22 and the level of $1.99 support. A breakout in either direction has the potential to cause a sudden price move, and therefore, it is essential that the traders keep an eye on the impending volatility.
The technical picture is further complicated by a descending triangle pattern, historically seen as a bearish formation. However, if XRP manages a breakout above $2.22 with conviction, it could target $2.50 or even $3.00. On the downside, failure to hold the $1.99 support may trigger a drop toward $1.85 or lower.
Breakout Above $2.31 Signals Trend Reversal for XRP
Traders are concerned about waning interest, with low volume leaving the door open for volatile swings. Should bullish momentum emerge, a breakout toward $3 remains within reach. Conversely, bearish breakdowns could follow if support crumbles. Volume remains the key variable to watch in this pivotal setup.
Crypto analyst CRYPTOWZRD observed XRP’s indecisive closing price action, indicating an impending spike in volatility. A rapid upward move early next week is predicted by him—dependent on the action of Bitcoin. A drop in BTC has the potential to upset XRP’s momentum, highlighting the significance of general market sentiment on XRP’s short-term path.
Analysts indicate that through the breakout at $2.31 with significant volume, there would be a genuine trend turn. Such a move would validate bullish strength and possibly trigger a run into price discovery territory—a level Ripple hasn’t reached in several years, hinting at the return of speculative momentum and investor enthusiasm.
XRP Price Surge Predicted Amid Regulatory Clarity
Regulatory trends have long determined the price direction of XRP, and the ongoing lawsuit at the SEC has put pressure on the cryptocurrency for the past three years. Recent case progress has turned the tide again in Ripple’s direction, as the SEC dispenses with its appeal.
Ripple CEO Brad Garlinghouse remains optimistic that the firm will eventually win its legal battle with the U.S. Securities and Exchange Commission (SEC). A positive ruling for Ripple would not only bring clarity to Ripple but also to the broader crypto sector.
Furthermore, growing speculation about Ripple’s strengthened ties with major financial institutions like Bank of America, along with the potential for a Ripple ETF, is boosting bullish sentiment.
Read More: XRP Weekly Overview and Current Price Trends