XRP’s price is at a critical juncture, with traders watching the $2.4 support level to determine the token’s next move. The recent price action shows a mix of bullish recovery signals and bearish risks, leaving market participants with a decision—accumulate on weakness or exit near resistance.
XRP Key Price Levels to Watch
The cryptocurrency has pulled back from recent highs, with price action showing mixed signals on the four-hour chart. The $2.4 level has emerged as a key support, and its strength will determine the token’s short-term direction.
A break below $2.4 could expose the market to sell-side liquidity near $2.326, increasing the chances of further declines. However, the cryptocurrency may rebound toward higher resistance zones if buyers defend this level. The market has already shown a shift in structure, suggesting that price movement could be volatile in the coming sessions.
Besides, the chart shows critical levels that traders are monitoring. The immediate resistance stands at $2.581, corresponding to the 50% Fibonacci retracement level. A breakout above this zone could allow buyers to push the price toward the $2.83 liquidity level.
Further upside targets include $3.15 and $3.55, which align with Fibonacci extension levels. On the downside, failure to hold above $2.4 could lead to a retest of $2.326. A breakdown below this support would indicate increased selling pressure, putting $2.10 as a possible target.
Chart Bias and Market Outlook
The market structure suggests indecision, with the XRP token trading inside a rising wedge pattern. This formation often signals weakening momentum, making the next breakout critical for price direction. Moreover, the Relative Strength Index (RSI), currently around 41, has been declining, hinting that the cryptocurrency market favors the bears slightly.
Yet, if the RSI rebounds above 45, it may indicate a shift in momentum, favoring buy-the-dip strategies. Conversely, a continued decline below 40 would confirm bearish control, increasing the breakdown probability. The on-chain data further supports the uncertainty in XRP’s price movement.
With $75.26 million in net outflows on February 18, 2025, investors appear to be moving holdings off exchanges, often a sign of accumulation. However, the XRP token’s price at $2.5628 suggests buyers lack momentum. If outflows continue without a price recovery, the $2.4 support could weaken, increasing the risk of a drop to $2.326.
Again, liquidation data shows $8.7 million in long liquidations, outpacing $2.21 million in shorts, indicating bulls faced more forced exits. If short liquidations rise, it could signal a reversal toward $2.83. Otherwise, XRP may remain under pressure, making the next move critical.
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