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XRP price has successfully flipped a critical breakout zone into support, signaling potential bullish momentum as it approaches the 200-day SMA resistance at $2.36.
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Technical indicators reveal XRP/BTC breaking a multimonth downtrend, with RSI bullish divergence suggesting strengthening investor confidence.
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According to COINOTAG sources, overcoming the $2.36 resistance is pivotal for XRP to target the $3 mark, with historical precedents supporting this outlook.
XRP price eyes a breakout above the 200-day SMA at $2.36, with bullish signals from XRP/BTC and RSI divergence pointing to a potential surge toward $3.
XRP Faces Crucial Test at the 200-Day SMA Resistance
XRP’s price action is currently consolidating within the $2.20-$2.30 range, where the 50-day and 100-day simple moving averages (SMAs) converge, creating a significant support base. The key hurdle remains the 200-day SMA at $2.36, a technical barrier that has historically marked the threshold before substantial upward moves. Breaking and sustaining above this level is essential for XRP bulls to regain control and push toward the $3 target. Past data indicates that flipping the 200-day SMA into support often precedes strong rallies, exemplified by the 430% surge following the November 2024 crossover.
Technical Momentum Builds as Analysts Highlight Bullish Signals
Market experts, including crypto analyst CasiTrades, emphasize the importance of XRP maintaining support above $2.25, where multiple technical indicators align, including the apex of a multimonth trendline and key SMAs. This confluence acts as a springboard for potential breakout moves. Similarly, analyst Dom points out that XRP’s position above the $2.25 breakout zone and major VWAPs, coupled with the breach of the 160-day downtrend line, signals a critical momentum shift. These insights collectively suggest that a decisive move past $2.30 could unlock targets at $2.69 and beyond.
XRP/BTC Pair Signals End of Downtrend with Bullish Divergence
On the relative strength front, XRP is showing promising signs against Bitcoin. The XRP/BTC pair recently broke above a descending trendline that had acted as resistance since March, indicating a potential trend reversal. A successful retest of this trendline would confirm the downtrend’s end, paving the way for further gains. Notably, the pair’s RSI has formed a bullish divergence, with higher lows in RSI contrasting with lower lows in price, a classic indicator of weakening selling pressure and growing buying interest.
Market Analysts Anticipate Strong Rally if Resistance is Cleared
Industry voices like Mikybull Crypto highlight the importance of surpassing the 0.000022 resistance level on the XRP/BTC chart to validate the bullish momentum. Breaking this resistance could trigger a robust rally, potentially translating into a 70% gain as suggested by recent technical patterns, including a symmetrical triangle breakout. This scenario aligns with expectations of XRP price climbing above $3, reinforcing the bullish narrative supported by both price action and technical indicators.
Conclusion
XRP is at a pivotal juncture, with the 200-day SMA at $2.36 serving as the critical resistance level that must be overcome to sustain bullish momentum. The convergence of technical signals, including support from shorter-term SMAs and a bullish RSI divergence on the XRP/BTC pair, underscores the growing strength behind the asset. Investors and traders should monitor these key levels closely, as a confirmed breakout could open the door to significant upside potential, targeting $3 and beyond. Maintaining disciplined risk management while watching for confirmation signals will be essential in navigating this crucial phase for XRP.
