XRP News Today: XRP Holds Above $2.20 Amid Bullish and Bearish Signals

The XRP price has been closely holding onto its support level above $2.20, serving as a significant barrier for bears. The cryptocurrency's price is currently hovering around $2.26, with key resistance levels identified at $2.28 and $2.32. These levels are crucial as a breakthrough could potentially validate bullish momentum. According to an analyst, if XRP can secure a weekly close above the $2.28–$2.33 range, it would confirm bullish momentum heading into the next trading week. Conversely, a breakdown below $2.21 with escalating sell pressure could lead to further declines.

For directional trades, a move above $2.26–$2.28, confirmed with volume, would support a long entry. This indicates that traders are closely watching these levels for potential entry points. The price of XRP has been trading in a tight range between $2.19 and $2.35, repeatedly testing both resistance and support zones. This range-bound trading suggests that the market is in a state of indecision, with neither bulls nor bears gaining a clear advantage.

The $2.28 level is particularly important as it serves as a critical resistance point. A breakdown below this level could lead to new highs in the $3.50 - $4.00 range, according to some analysts. However, the current price of $2.21 suggests a short-term consolidation between $2.28 and $2.21. This consolidation phase is crucial as it will determine the next direction of the XRP price. If the price manages to break through the $2.28 resistance, it could signal a bullish trend, potentially leading to higher prices. Conversely, a failure to break through this level could result in a further decline, testing the next support level at $2.21.

The XRP price has shown some signs of warming up, with a 3% increase in the last seven days. This tiny move may seem underwhelming at first glance, but it indicates that there is still some buying interest in the market. However, newer holders are barely breaking even, and the 6 to 12-month cohort faces a potential 35% downside before reaching their break-even point. This suggests that the market sentiment is still cautious, with many investors waiting for a clear direction before making significant moves.

While there has been some recovery in the crypto market and, by extension, the XRP price, there has not been enough momentum to show that this is a sustained increase. This is something that crypto analyst MyCryptoParadise alludes to in their latest analysis, warning that it is possible that the digital asset might end up seeing a classic bear trap. The reason behind this is the fact that there have been a number of bearish developments on the XRP price chart that suggest that the price is likely to go down. For one, a Change of Character toward the more bearish side puts sellers in the lead, and this usually signals the start of a bearish downturn.

Another development that has rocked the altcoin is an inverse Cup and Handle pattern that is still in the process of playing out. The crypto analyst also explained that these developments, in addition to the break below the key support trendline, suggest that a crash is coming for the XRP price. From here, bears are already applying pressure that could result in a 10% crash. This would push the cryptocurrency back toward the previous support, and according to the analyst’s chart, this lies just above the $2 level. What this means is that a crash from here also puts the altcoin at risk of falling below $2, something that would be incredibly bearish and could lead to freefall.

MyCryptoParadise outlined that the best way to play this analysis is to wait for confirmation. With the bearish thesis, they explain that it is best to wait for the XRP price to see a “proper pullback” before they enter the market. This would increase the risk-to-reward ratio after the trend direction has been confirmed. However, there is also the possibility that the XRP price does not crash from here and that lies at the $2.28 level. The analyst explained that if the price is able to cleanly break above this level and make a successful close above $2.28, then it would invalidate the bearish thesis and mark a continuation of the uptrend. “In such a case, it’s better to stay patient and wait for clearer price action before making any decisions,” the analyst said.