XRP News Today: XRP Faces Crucial Resistance at $2.38, Analysts Eye Major Move

XRP, the cryptocurrency, is currently at a critical juncture, with analysts closely monitoring its price movements. A decisive break above the $2.38 level could trigger a significant move, as it would clear both psychological and technical resistance levels. This breakout is anticipated to lead to a substantial price increase, potentially marking a major shift in the market sentiment towards XRP.

Cryptocurrency trading expert Ali Martinez has identified the $2.38 mark as the key barrier preventing XRP from a major breakout. Martinez arrived at this target by analyzing XRP’s UTXO Realized Price Distribution (URPD) chart, which shows $2.38 as the highest concentration of previously transacted XRP, representing over 2.75 billion tokens, or 4.33% of the total supply. The URPD metric, which tracks the price levels where tokens were last moved, indicates strong resistance at $2.38, as many holders may look to sell or break even at that point. However, the analyst believes a decisive break above $2.38 could “trigger a major move” by clearing both psychological and technical resistance levels. Such a breakout would invalidate significant overhead supply and potentially usher in renewed bullish momentum.

Martinez also noted strong support between $0.50 and $1.80, particularly below the $1 level. Still, the key challenge remains the $2.38 zone, which has remained untested since XRP’s all-time highs. Meanwhile, analyst CrediBULL Crypto emphasized XRP’s potential for a breakout. He pointed out that XRP is entering its eighth consecutive month of consolidation above its previous all-time high monthly close, an important technical milestone. This sustained price action above a former resistance-turned-support area signals growing strength and maturity. The analyst added that the ongoing consolidation, following a sharp breakout, suggests XRP may be preparing for another strong upward move. If confirmed, it could mark a new bullish impulse, further cementing XRP’s status as one of the most technically resilient digital assets.

At press time, XRP was trading at $2.22, down about 0.7% in the last 24 hours. On the weekly chart, the asset is up 1.44%. Currently, XRP is slightly below its 50-day simple moving average (SMA) of $2.25, suggesting mild short-term weakness. However, it remains well above the 200-day SMA of $1.81, indicating a strong long-term uptrend.

The current price of XRP is hovering around $2.24, just below the key resistance level of $2.27. This resistance has been a significant barrier for over a month, and breaching it is crucial for XRP's recovery. However, the selling activity from large holders, or whales, has raised concerns about the altcoin's ability to sustain its upward momentum. The age consumed metric, which tracks the selling activity of long-term holders (LTHs), recently hit a 7-month high. This spike indicates that LTHs are increasingly willing to sell their holdings, suggesting a negative shift in their sentiment towards XRP. LTHs are considered to be the backbone of an asset’s stability, so their decision to sell could signal weakening confidence in XRP’s future price prospects. With LTHs contributing to the selling pressure, the potential for further price gains diminishes. This shift in behavior from these crucial holders could signal an impending decline in XRP’s price stability.

If XRP fails to break through the $2.27 level, the next likely move would be a return to support around $2.13. If sellers continue to dominate, especially those with large holdings, XRP could face a retracement, testing lower support levels. However, if bullish cues dominate the market, XRP could manage to breach $2.32, potentially establishing it as support. In this scenario, XRP could rise towards $2.45, as the market sentiment shifts and large buyers step in to push the price higher.

The current price movement of XRP is warning traders not to ignore it. The asset is perilously close to a mini death cross formation, which is a bearish precursor. However, if XRP holds above $2.09 and volume begins to increase, a rotation toward the $2.42 resistance becomes highly probable. Breaching this resistance would mark a significant move for the altcoin, potentially leading to a substantial price increase. A notable market analyst believes that XRP is now coiling like a spring, suggesting that a breakout could lead to a substantial price increase.

In conclusion, the current price movements of XRP are critical, with the altcoin facing significant resistance levels. A decisive break above $2.38 could trigger a major move, but the selling activity from large holders and bearish signals in the market pose challenges to XRP's recovery. The next few days will be crucial in determining the direction of XRP's price movement.