XRP experienced a significant price increase of 6.7% today, with trading values fluctuating between $2.195 and $2.216. This upward movement has solidified its position as the fourth-largest cryptocurrency by market capitalization, which currently stands at $132 billion, placing it just behind Tether (USDT).

Daily Chart Indicates a Shift in Momentum

On the daily chart, XRP shows signs of ending its recent downtrend from $2.70 to $1.83. The formation of a bullish engulfing candle, a classic technical pattern, suggests a potential reversal. This price action was supported by a considerable increase in trading volume, indicating renewed interest from large-scale investors.

The asset has successfully retested a strong support level at $1.83, while immediate resistance is anticipated in the $2.30 to $2.40 range. The recent break in the pattern of lower highs points to a notable shift in market sentiment. If the current momentum continues, analysts suggest the price could target the $2.35 to $2.45 region next.

Shorter Timeframe Perspectives

The 4-hour chart reveals a sharp, V-shaped recovery from the $1.83 support level. XRP’s price has moved through several resistance zones and is now consolidating near $2.20. A rounded bottom pattern appears to be forming, and a series of higher lows reinforces the positive market structure. The alignment of rising prices with growing volume further strengthens the bullish case. A brief pullback to the $2.10 to $2.15 area could serve as a new support base for a potential move toward the $2.30 to $2.35 resistance ceiling.

Looking at the 1-hour chart, XRP has decisively broken out of its previous sideways trading range at the $2.20 mark. This breakout was driven by a surge in volume that overcame horizontal resistance, creating opportunities for short-term traders. Following this move, minor retracements toward the $2.15 to $2.18 range may present entry points for tactical plays, with a key support level established just below $2.10.

Interpreting the Technical Indicators

The technical indicators present a mixed picture. Most oscillators, including the Relative Strength Index (RSI) and the Stochastic Oscillator, are currently in neutral territory. While momentum is tilting slightly positive, the Moving Average Convergence Divergence (MACD) indicator has not yet confirmed a bullish trend.

A divergence is also visible in the moving averages. Short-term indicators like the 10-period Exponential Moving Average (EMA) and Simple Moving Average (SMA) are showing positive signals, reflecting the day’s sharp price ascent. However, the longer-term averages (20, 30, 50, and 200-period) remain in bearish territory. This contrast suggests that while short-term sentiment is strong, a sustained long-term trend reversal is not yet confirmed.

The Bullish and Bearish Scenarios

The bullish case for XRP is supported by the strong price momentum, the bullish candle pattern on the daily chart, and the solid support at $1.83. If the price can maintain its position above $2.10 and overcome the resistance near $2.30, a new upward trend could be established.

Conversely, the bearish outlook highlights the continued negative signals from major long-term moving averages and a lagging MACD. If the current momentum falters and XRP’s price falls below $2.10, it could decline toward the next support level around $1.95, indicating that the recent rally was a temporary bounce rather than a sustainable recovery.

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