- XRP is consolidating below key resistance levels, with technical indicators hinting at a potential breakout if it closes above $2.36.
- However, declining on-chain activity and whale distribution raise caution, making the next few days crucial for determining its medium-term direction.
Ripple’s native token XRP is currently caught in a tense standoff, trading just below key resistance as momentum stalls. With the price consolidating and technical indicators sending mixed signals, traders are closely watching for a decisive move that could set the tone for XRP’s next major trend.
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Technical Picture: Tight Range Signals Potential for Breakout
Over the past week, XRP has declined by 1.3%, reflecting a phase of low volatility and uncertainty. The token is stabilizing in the $2.14–$2.19 range, with firm support at $2.00. This level has consistently acted as a defensive line for bulls, with deeper support sitting at $1.90—a crucial level from earlier breakouts.
On the upside, resistance lies at $2.36, $2.60, and $3.00. A close above $2.36 would be the first real sign that buyers are regaining control. The $2.60 level, last reached in late March, remains both a technical and psychological hurdle. Meanwhile, $3.00 would represent a symbolic reclaim of 2021 highs.
Momentum and Moving Averages: Market Awaits a Trigger
XRP’s momentum remains neutral, with the Relative Strength Index (RSI) hovering around 51. This suggests neither buying nor selling pressure is dominant. Meanwhile, the 20-day EMA and 50-day SMA have converged near current price levels, a formation that often precedes significant price movement.
A break above the descending trendline from the April 30 high could ignite the next leg upward. Analysts tracking Elliott Wave patterns believe XRP may be forming a bullish diagonal—a pattern often seen before a breakout. If confirmed, XRP could surge toward $2.60, and possibly retest the $3.00 barrier.
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XRP On-Chain Signals and Whale Activity Flash Caution
Despite the bullish setup, on-chain data tells a more cautious story. Daily active addresses have dropped to around 30,000, down from over 50,000 earlier in the year. Whale wallets holding over 10 million XRP have also been distributing in recent weeks, signaling a lack of strong conviction among large holders.
All eyes are now on two critical elements: price action around $2.36 and potential regulatory developments. A favorable update in Ripple’s ongoing battle with the SEC could act as a catalyst, lifting XRP sharply higher. However, failure to hold above $2.00 may send the token tumbling back to $1.90, shifting sentiment bearish.
As XRP trades in a tightly coiled range, the next breakout—up or down—could define its medium-term direction.
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