Ripple has confirmed a breakout from its prolonged descending trend, potentially evolving into a new upward phase, but the asset has already encountered a critical resistance level.
Breaking the Descending Trend
XRP successfully surpassed its prolonged descending trend and the 200-day moving average, triggering a sharp bullish move. This breakout marks a significant change in market sentiment, with the price quickly rising to test the $3 resistance. However, this level is now acting as a formidable resistance.
Daily Chart Analysis
On the daily chart, XRP broke above the $2.7 resistance level that had capped its price action for several months. This breakout was accompanied by strong bullish momentum; however, upon reaching the $3 resistance zone, the momentum faded. The asset has since pulled back to retest the $2.7 level, forming a pullback structure. If buying interest resurfaces at this level, a new surge targeting the $3 mark is likely.
Short-term Predictions
Should the pullback deepen, the next key support lies within the 0.5–0.618 Fibonacci retracement range, indicating the potential for a more extended correction before the next upward leg. To maintain its bullish structure, Ripple must reclaim and hold above the $3 threshold.
The ability of Ripple to maintain its bullish structure is contingent upon the asset's ability to stay above critical levels. A breakout above $3 will be a significant step towards achieving new highs.
