With the asset trading within a descending price channel that may soon result in a notable breakout, XRP's price chart displays an interesting setup. After a parabolic rise, the pattern is a typical consolidation phase realized in a descending channel, indicating a build-up of momentum for the next significant move.
Since XRP's most recent peak above $2.80, the descending channel has served as a corrective phase. The consistent trading volume and relative strength index, which is circling around overbought levels but not indicating extreme exhaustion, show that XRP is still fundamentally strong despite this decline.
The price has maintained higher lows and demonstrated resilience close to the $2.30 support level, which is a sign of bullish continuation. Upon closer inspection, the upper limit of the descending channel, which is currently at $2.50, is a crucial level to keep an eye on for a new breakout. If this level is decisively broken, it could serve as a launching pad, sending XRP back to its prior highs and possibly even beyond.
In contrast, if XRP does not break out, there may be another opportunity for accumulation if a retest of the lower support around $2 or the 26 EMA occurs. The performance of XRP is also greatly influenced by the general mood of the market. Given the growing activity on the larger cryptocurrency market and the expectation of regulatory clarity, XRP may be ready for a major surge.
The next target if the breakout happens might be $2.80, and then the psychological barrier at $3. As XRP moves closer to the peak of the descending channel, the next 48 hours will be crucial. A possible pattern resolution should result in a trend continuation, especially if the volume remains solid. Regardless of whether the breakout occurs on the upside or the downside, it is evident that XRP is getting ready for a significant move.
Patience and close attention to the breakout level are crucial for investors. While a rejection could present another chance to buy at lower levels, a strong breakout could indicate a resumption of the bullish trend.
