XRP News Today: XRP Dominance Tests Sky Dome Resistance at 2.57%

XRP, the cryptocurrency associated with Ripple, has recently formed a powerful double bullish setup near what traders refer to as the "Sky Dome" barrier. This technical formation suggests a potential for significant upward movement in the value of XRP. The double bullish setup is a pattern that indicates strong buying pressure and is often seen as a precursor to a substantial price increase. The "Sky Dome" barrier is a psychological and technical level that, once breached, could lead to a surge in XRP's dominance within the cryptocurrency market.

The formation of this double bullish setup is particularly noteworthy because it occurs at a critical juncture for XRP. The cryptocurrency has been navigating a complex regulatory landscape, with ongoing legal battles and regulatory scrutiny from various jurisdictions. Despite these challenges, the technical indicators suggest that XRP has the potential to overcome these obstacles and achieve significant gains.

The double bullish setup is characterized by two consecutive bullish candlestick patterns, which indicate that buyers are in control of the market. This pattern is often seen as a strong signal of a potential trend reversal or continuation, depending on the broader market context. In the case of XRP, the formation of this pattern near the "Sky Dome" barrier suggests that the cryptocurrency is poised for a breakout to the upside.

The "Sky Dome" barrier is a significant resistance level that has historically proven difficult for XRP to overcome. However, the double bullish setup suggests that the cryptocurrency has the momentum and buying pressure necessary to break through this barrier. Once XRP breaches the "Sky Dome" barrier, it could experience a rapid appreciation in value, as traders and investors rush to capitalize on the upward momentum.

XRP dominance at 2.57% tests long-term “Sky Dome” resistance with triple bottom support and key 0.5 Fib level at 2.50%. The analyst has been tracking this setup since November 2024, describing it as a potential turning point for XRP’s broader position in the market. The pattern forming now shows a potential triple bottom, a bullish reversal pattern marked by key points in 2017, 2020, and 2024. These three historical lows have been noted as major in shaping a new upward direction. The dominance metric is also aligned with the 0.5 Fibonacci level, at 2.50%, adding further weight to this inflection zone.

Market Change Expected if “Sky Dome” Breaks. A breakout above the “Sky Dome” trendline would mark a change in market outlook for XRP. This could set off what some have termed “space expansion,” referring to fast upward movement in XRP’s share of the total crypto market. Key Fibonacci extension levels have been drawn from the November 2020 high to the June 2024 low. These include the 0.702 Fib at 3.66%, the 1.0 Fib at 6.08%, and the 1.272 Fib at 9.65%. The 1.618 Fibonacci level, at 17.39%, represents the furthest projection in this bullish sequence. According to the chart breakdown, the immediate goal after a confirmed breakout is the 6.08% mark, followed by a medium term climb to 9.65%. The potential for a double digit dominance would place XRP among the top market assets by share.

On the price front, XRP is trading at $2.90 after reaching a recent high of $2.9582. The price has pulled back from the opening level of $2.95, a daily decline of 2.80%. Technical indicators show XRP recently broke above previous consolidation areas. It surged strongly in early July but now trades just below the upper Bollinger Band at $2.93. This region often leads to short term consolidation unless driven by strong volume or fundamentals. The Bollinger Bands show a middle line at $2.3960 and a lower band near $1.8583. XRP’s price action currently exceeds the upper band, suggesting overbought conditions.

The MVRV Z Score, a measure of valuation compared to historical norms, is elevated at 32.8370. This reading suggests potential overvaluation, typically seen before corrective movements. Should XRP hold the $2.60–$2.75 zone, another attempt at the $2.93 resistance is possible. A clean break above that level opens the door toward $3.20–$3.50. However, a drop below $2.75 could expose the 20-day SMA at $2.39. If that breaks, price may retest previous demand zones near $2.00–$2.20, aligning with the lower Bollinger Band. XRP’s dominance and price are now both at inflection points. Key trendline tests and important Fibonacci levels will determine the direction in the coming sessions.