With a steady recovery from its steep correction earlier this month, XRP is once again standing in front of a market turning point as it consolidates around the $2.66 mark. Refocusing attention on the $3 psychological level, the recent price action indicates increasing momentum and a potential transition from short-term weakness toward a renewed bullish phase.
XRP's dramatic recovery
Following a string of higher lows that suggest fresh accumulation, XRP has dramatically recovered from the $2.35 support on the daily chart. Now that it has risen above the 200-day moving average (black line) once more, the asset is testing the 50-day EMA close to $2.77, which has historically been used as both confirmation and resistance for trend reversals.
It is much more likely that XRP will sustain a rally toward $3.00-$3.10 if it can hold above this zone and secure a daily close above $2.80. Following weeks of cautious selling, there has been a slight increase in trading volume, indicating that institutional and large-holder participation is gradually returning.
XRP gets rejected?
A balanced state between buying and selling pressure is reflected by the Relative Strength Index (RSI), which is currently at 53. This is the perfect setting for a breakout attempt without overbought conditions. But investors should keep an eye on the adjacent resistance zones, which are between $2.77 and $2.90, where XRP has been repeatedly rejected in the past.
The overall bullish structure would need to hold if there was a short-term pullback toward $2.55-$2.45, which could be triggered if this area is not broken. Short liquidations and rekindled speculative demand could drive XRP’s move toward $3.00 quickly and decisively if it is able to break above $2.90.
Given that XRP frequently serves as a sentiment driver for large-cap assets, the breakout would also portend a more widespread recovery in the altcoin market.
XRP is at a crucial stage of its recovery. A confirmed breakout above $2.80 could pave the way to $3 and beyond, but if it doesn’t, there may be another consolidation phase before the subsequent leg up. The market structure indicates that momentum is beginning to shift back toward buyers.
