XRP recently demonstrated a textbook rebound from its $1.80–$1.70 support range, delivering nearly 35% gains in a short span. The rebound confirms that buyers continue to defend this critical zone, which previously acted as a key accumulation point.
After the bounce, the price of XRP moved to $2.4172, which marked strong gains. In the short term, the support level would be $3.00-$3.50, with $3.50 acting as a strong resistance level. In the medium term, if XRP holds above $3.50 with strong volume, the level of $10 seems possible.
Market structure for XRP has evolved over the years. The cryptocurrency remained below a downward trend line for a long period, indicating a bearish trend. However, in mid-2024, the trend line was definitely breached, indicating a shift from the accumulation to the expansion phase.
After regaining its former resistance, XRP has formed a series of successively higher lows and traded in a range of $0.45 to $0.65. Such a strong foundation absorbed a good deal of selling and then propelled the price to over 500% higher at $3.20 to $3.30.
The decline from $3.30 to around $2.00-$2.20 is more of profit-taking. The zone is now used as an accumulation region since it is above the former region of resistance at around $0.80 to $0.90. This region is now support. The analysis shows that as long as XRP is above $2.00, the trend is still intact. Pullbacks to this region are expected as part of the process and even re-accommodation could be expected.
XRP Consolidation Signals Potential Next Leg
Weekly charts indicate that XRP is currently experiencing a post-rally consolidation pattern, absorbing the total gains made towards the end of 2024. The closing of the weak chart at the rate of $2.13 indicates strong support at key levels. The retracement made is around 78-80% of the final move.
This is supported by the momentum indicators. The RSI is staying in the mid-40s, which is easing back from overbought levels without falling into the oversold region. In addition to this, the histogram of the MACD is becoming smaller, which means that the bearish momentum is slowing down, and a bullish crossover may be impending.
Also Read: XRP Hits Fear Zone, Traditionally Favoring Price Rallies
