XRP (XRP-USD) is trading at just over $3, but traders say the coin is sitting on a knife’s edge. A breakout above resistance could unlock the next big rally, while a slip under support risks unleashing a bout of selling. The situation looks like Pandora’s box because nobody knows whether bullish or bearish forces will emerge once the lid comes off.
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Bulls Build Pressure at $3.04
On the one-hour chart, XRP has rebounded cleanly from support around $2.93 and is pressing toward the upper range near $3.02. The growing volume shows that buyers are stepping in, and if price clears $3.04 with conviction, analysts say it could confirm a short-term breakout. This would prime XRP for a rapid move higher, giving bulls a clear edge in the sessions ahead.
The broader four-hour view tells the same story. After a sharp run from $2.78 to $3.03, XRP pulled back into a tight consolidation zone between $2.95 and $3.03. This range now looks like a bullish flag or pennant. If buyers push through resistance, the pattern could resolve upward and extend the trend, supported by a surge in trading volume.
XRP’s Daily Trend Turns Constructive
The daily chart shows a bigger change that’s underway. After bottoming at $2.70 in August, XRP has been carving out higher lows and higher highs. This is a typical sign of an uptrend. Momentum candles and steady volume strengthen the case that demand is returning.
The next major target is $3.38, where heavy resistance sits. Clearing that zone could fuel a run toward $3.50. But bulls will need to defend $2.93 along the way. A break below that support would flip the setup bearish and risk dragging price back to $2.70.
XRP’s Technical Indicators Show Early Momentum
Technical indicators are lining up in favor of the bulls, even if trend strength is still modest. The relative strength index sits at 54, right in neutral territory but tilting higher. Both the momentum indicator and MACD are flashing bullish signals, suggesting an early uptrend is forming under the surface.
Moving averages add weight to the bullish case. Most short- and long-term exponential and simple moving averages are pointing upward, showing sustained bias toward higher prices. The one exception is the 50-period SMA, which is lagging near current price levels. Traders say if XRP clears that line, it could unlock faster upside.
What Comes Out of the Box?
If XRP bursts above $3.04, bulls may finally get the follow-through they’ve been waiting for, with a clear path toward $3.38 and beyond. This would confirm the uptrend and keep momentum alive.
But if price fails at resistance or drops under $2.93, Pandora’s box could release a very different force. Bears would take control, and a retracement to $2.70 would become the base case.
At the time of writing, XRP is sitting at $2.9945.
