Can XRP Resume Its Rally After Defending Key Support?

XRP Price Analysis: Can XRP Resume Its Rally After Defending Key Support?

XRP is consolidating after its sharp late-August breakout, with the price now hovering close to $1.40. The charts suggest that the broader structure has improved considerably, but the token remains trapped beneath a major resistance zone. A breakout from the current corrective structure could determine whether the recent rally resumes or develops into a deeper retracement.

Ripple Price Analysis: The USDT Pair

On the daily timeframe, XRP has undergone a significant structural shift. After spending several months in a broad downtrend, the asset broke decisively higher in late August, surging from around $1.00 to a spike near $1.70. This move also pushed XRP above the previously declining long-term trendline and the major moving averages visible on the chart.

The subsequent pullback has brought XRP toward the $1.30 area, which is currently highlighted as an important demand zone at a clear bullish imbalance area. Meanwhile, the still price remains above the 100-day and 200-day moving averages, suggesting that the broader recovery structure is still intact despite the recent correction.

Above the current price, the $1.5 region represents the main resistance zone. It previously acted as a significant supply area and has already rejected XRP several times over the past year. Therefore, a daily close above this zone would significantly strengthen the bullish case and could pave the way toward the $2 region, which is an important psychological barrier for Ripple.

The momentum picture has also cooled substantially from the extreme levels reached during the initial breakout. The daily RSI has fallen below 75, relieving overbought conditions while remaining above the neutral 50 area. This is generally constructive because XRP has been able to consolidate without completely losing its momentum.

The 4-Hour Chart

The 4-hour chart provides a clearer view of the current correction. Since the late-August spike, XRP has been forming a descending structure defined by two downward-sloping trendlines. The price is currently near $1.37 and appears to be testing the upper boundary of this formation.

This makes the current area particularly important. A breakout above the descending resistance line, followed by a move through the $1.5 zone, would provide an initial signal that the corrective phase may be ending.

On the downside, the highlighted $1.25 bullish order block is the immediate support region. As long as XRP continues to hold this zone, the descending structure could eventually resolve to the upside. A breakdown below it, however, would increase the probability of a deeper retracement toward the lower order block around $1.1.

Overall, XRP is approaching a decision point. Holding $1.25 and breaking above the descending trendline would favor continuation above $1.5. Conversely, losing the $1.25 area would invalidate the immediate bullish setup and could send the price back toward the base of the recent rally.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

About the author

Full-time on-chain Data Analyst and Python Programmer. Passionate about Bitcoin and DataVisualization.

Source: cryptopotato.com