XRP is teetering on the edge of a potential breakout, with analysts pointing to key technical indicators that could drive the price past the long-anticipated $3 mark. The cryptocurrency, which traded flat on Tuesday at $2.26, faces strong resistance around the $2.30 level, but bullish signals are mounting both in USD and BTC pairings.
Key Resistance Levels Hold the Key to $3
The primary obstacle for XRP bulls is the $2.20 to $2.30 resistance range, with the 200-day simple moving average (SMA) positioned at $2.36. This level has historically acted as a springboard for significant rallies. For instance, in November 2024, XRP closed above its 200-day SMA and rallied 430 percent to hit a multi-year high of $2.90 by December 3.
To resume its upward momentum, XRP must first close above the $2.20 to $2.30 range on the daily chart. The 50-day and 100-day SMAs, sitting at $2.22 and $2.20 respectively, are currently converging with this zone, adding to its technical significance. Once this region is convincingly flipped into support, the 200-day SMA at $2.36 becomes the next critical level. A successful breakout here could pave the way to higher targets, including $2.69 and potentially beyond $3.
Momentum Builds on Bullish Technical Signals
Crypto analyst CasiTrades, in a post on Monday, noted that XRP’s formation of multiple higher lows and its reclaiming of $2.25 support are classic signs of bullish continuation. According to the analyst, the convergence of key SMAs at this level strengthens the probability of an upward move.
“We are now just beneath $2.30, our local resistance,” CasiTrades wrote. “Once this level breaks, the next likely targets are $2.69 and $3.04.”
Echoing similar views, pseudonymous analyst Dom observed that XRP is currently trading above a crucial breakout zone. This zone, located above $2.25, is where major volume-weighted average prices (VWAPs) and the 160-day downtrend line intersect. Dom said this alignment offers the “exact momentum bulls need” to push XRP towards the $2.40s.
XRP and Bitcoin Pair Signals Further Strength
The optimism surrounding XRP is not limited to its USD pairing. XRP is also showing bullish divergence against Bitcoin, with the XRP/BTC pair recently breaking out of a multimonth descending trendline at 0.00002065. This line had served as resistance since March and its breakout is being seen as a strong indicator of a trend reversal.
A successful retest of the trendline would confirm the end of the downtrend, opening up the possibility for higher gains. The bullish sentiment is further supported by the relative strength index (RSI), which climbed from 28 to 55 between May and July even as the XRP/BTC pair formed lower lows.
This divergence between falling prices and a rising RSI often signals weakening bearish pressure and growing investor interest. It is also typically interpreted as a cue for traders to accumulate on dips.
Analysts Predict Continued Outperformance
Market experts believe XRP is well-positioned to outperform Bitcoin in the short to medium term. Analyst Mikybull Crypto noted that the XRP/BTC pair must overcome resistance at 0.000022 to fully confirm a bullish breakout. If successful, this move could fuel a broader rally in XRP price.
According to recent technical projections, a breakout from the current symmetrical triangle pattern in the XRP/BTC chart could trigger gains of up to 70 percent. Such a development would not only validate bullish sentiment in the market but could also drive XRP above the psychological $3 mark for the first time in months.
Conclusion
As XRP continues to hover just below major resistance levels, all eyes are on whether bulls can push past $2.36 and maintain momentum. A successful breakout could ignite a strong rally, especially if supported by continued strength against Bitcoin. With bullish indicators aligning and historical patterns favouring an upward move, XRP’s long-anticipated return to $3 appears within reach.
