XRP has climbed back above the psychologically important $2 level, but traders are watching closely to see if the move sticks after the token repeatedly failed to hold that price in recent weeks.
Buyers began returning in late December, pushing XRP past the $2 support line that had acted as both a floor and a ceiling since mid-November. The rally sets up an immediate target at $2.40, a level that has capped every attempt at a breakout since early October.
Price Action Turns Bullish
The daily chart now favors the upside as long as $2 holds. A sustained close above that mark would mark the third time since November that bulls have wrested control of the level, only to lose it days later. The difference this time, analysts note, is the weekly relative-strength index (RSI), which has crossed above its own moving average for the first time since July.
While the RSI shift is encouraging, momentum has not yet hit the 50-point mark that would confirm a broader trend change. Until that happens, the $2.40 resistance remains the next major hurdle.
Volume Lags Behind Price
One red flag is volume. Despite the 8% rebound from the December low, turnover has continued to print lower highs, signaling that the move has been driven by a narrow group of participants rather than broad-based buying. A breakout above $2.40 would likely need a surge in volume to avoid another swift rejection.
Traders are now watching two levels:
- $2.00 – immediate support that must hold to keep the bullish bias intact
- $2.40 – key resistance that has rejected three separate rallies since early October
A daily close above $2.40 would open the door to a quick run toward the next cluster of sellers around $2.70, while a slide back below $2 would re-expose the December low near $1.75.
Market Context
The latest push higher comes as broader crypto sentiment improves, with Bitcoin holding above $95,000 and Ethereum rebounding past $3,400. Still, XRP’s year-to-date gain of roughly 12% trails both Bitcoin and Ethereum, highlighting the token’s struggle to regain the momentum that carried it to a three-year peak of $2.90 in July.
News Of Losangeles data show that open interest on XRP perpetual futures has risen 11% since December 28, indicating that leveraged traders are positioning for a larger move. Funding rates remain neutral, however, suggesting that neither longs nor shorts are paying a premium to keep positions open-an environment that often precedes volatility once a clear directional break occurs.
Technical Outlook
- Weekly RSI: Bullish crossover above its moving average, but still below 50
- Daily MACD: Printed a buy signal on December 30
- Volume: Down-trending since early November
Chartists note that XRP has a history of sharp, vertical moves once $2.40 gives way. The last two breakouts above that level produced average gains of 18% within five trading days, although both rallies ultimately reversed after failing to hold above $2.70.
Key Levels to Watch
| Level | Significance |
|---|---|
| $2.70 | July swing high, next major resistance |
| $2.40 | Immediate ceiling, three prior rejections |
| $2.00 | Flip zone-must hold for bulls |
| $1.75 | December low, last line of defense |
Bottom Line
XRP’s reclaim of $2 is a step in the right direction for bulls, but the low-volume backdrop and looming $2.40 barrier keep the near-term outlook balanced. A decisive, high-volume close above $2.40 would likely trigger a quick spike toward $2.70, while failure to hold $2 would revive downside pressure toward the $1.75 low.
