- Price analysis
- XRP movement scenarios
The validity of XRP’s breakout is questioned due to its recent price action. Expectations of a confirmed uptrend were sparked when XRP momentarily crossed above the descending resistance line on the daily chart, which was located around $3.10. Many traders questioned whether this was a real breakout or a bull trap, because the rally was short-lived and the price had already fallen back below $3.08.
Price analysis
Despite its efforts to overcome resistance, the structure indicates that XRP is still vulnerable. The $3.00-$3.10 range is turning out to be a crucial area of conflict. A persistent close above $3.10 might pave the way for a retest of the annual highs and open the way toward $3.40. Conversely, if this area is not regained, support levels at the orange EMA line ($2.81) and the 200-day moving average ($2.50) would once again be relevant. Since the RSI is close to neutral, it appears that momentum is not clearly in favor of bulls.
This uncertainty is increased by on-chain data. Between Sept. 12 and two days later, the number of transactions executed fell precipitously from over 11.7 million to much lower levels. A bearish indication that casts doubt on the bullish breakout story, this decline indicates waning activity on XRP Ledger. Strong rallies are usually followed by high activity, so declining transactions during a breakout attempt indicate weakened network participant conviction.
You Might Also Like
XRP movement scenarios
-
Bullish scenario: The asset may confirm the breakout and move toward $3.40 and higher if XRP swiftly recovers $3.10 and closes above it with increasing volume. This move would require a spike in on-chain activity.
-
Bearish scenario: As bears regain control, the breakout will be verified as fraudulent if XRP is unable to recover $3.10. It’s likely that the price will drop toward $2.81 or even $2.50, particularly if on-chain activity keeps dropping.
XRP is currently at a turning point. Whether the breakout materializes or fades into another failed attempt will be determined by the next few daily closes. For confirmation, traders should keep a close eye on the on-chain activity trend as well as the $3.10 resistance.