XRP News Today: XRP Holds Above $3.40 Support Amid Bullish Flag Formation

XRP has maintained a crucial hold above the $3.40 Fibonacci support level, indicating sustained bullish momentum. This level, previously a resistance, has now turned into a strong support, underpinning the current bullish momentum. The formation of a descending flag pattern—a classic continuation signal in technical analysis—suggests that XRP is poised for a potential upward breakout. The token’s recent surge from below $2.00 to above $3.50 confirms a significant breakout from a prolonged consolidation phase, indicating renewed investor confidence.

Key moving averages further validate XRP’s bullish trajectory. The 50-day moving average at $2.386 remains well above the 200-day moving average at $2.213, forming a golden cross that typically signals sustained upward momentum. Volume-based indicators such as the On-Balance Volume (OBV) and the Accumulation/Distribution (A/D) line have steadily increased, reflecting consistent buying pressure. Despite this, the Stochastic RSI currently indicates overbought conditions, suggesting a potential short-term pullback or consolidation before the next leg higher.

Should XRP break above the upper trendline of the descending flag, the next significant resistance target lies at approximately $4.16. This level represents a logical profit-taking zone based on Fibonacci extensions and historical price action. Conversely, if the price dips below the $3.40 support, the Fibonacci 0.888 retracement level at $3.12 offers a secondary support zone that could sustain the bullish structure. Failure to hold this level might expose XRP to deeper retracements near $2.89, $2.72, or $2.55, aligning with the 0.786 to 0.618 Fibonacci zones, which are critical for maintaining the overall uptrend.

Investor sentiment remains cautiously optimistic. The blend of strong volume, favorable moving average alignment, and key Fibonacci support levels provides a solid foundation for continued gains. However, traders should remain vigilant of short-term volatility indicated by overbought momentum oscillators. Maintaining positions above $3.12 will be crucial to preserve the bullish outlook. A confirmed breakout from the flag pattern could trigger accelerated buying interest, potentially propelling XRP toward the $4.16 target and beyond.

XRP’s ability to hold above the $3.40 Fibonacci support amid a bullish flag formation underscores a strong long-term uptrend reinforced by volume and moving average indicators. While short-term overbought signals suggest the possibility of a minor pullback, the overall technical setup remains favorable for further upside. Investors should monitor key support levels closely, as maintaining these will be critical for sustaining momentum toward the $4.16 resistance target.