An analyst’s recent chart review shows XRP holding steady around the $2.80 level while forming a structure that has historically preceded bigger moves. The analysis points to two possible short-term outcomes, yet both lead to the same bullish conclusion in the long run.
Bullish Technical Analysis For XRP
XRP has spent the past week moving around $2.80, with repeated tests of both higher levels at $2.88 and lower levels at $2.71 failing to deliver a decisive breakout.
The most recent three-day candlestick chart shows how XRP has created three consecutive bearish candlestick while support has held close to $2.72. This period of consolidation comes after months of volatility that saw the token retrace back below $3 in September.
Against this backdrop, a new technical analysis posted on the social media platform X shows two possible short-term scenarios for XRP, both of which point to the same long-term bullish outcome.
The analyst noted that the altcoin closed just over $2.80 in the latest three-day candlestick session, and this coincided with the appearance of hidden bullish divergence on the chart’s relative strength index (RSI). This divergence is a signal of underlying strength in spite of the most recent price downtrend.
According to the analyst, this setup is consistent with its behavior ever since it broke away from the $0.50 price zone. As it stands, the altcoin is now forming a structure that precedes a strong bullish move, although the next move depends on the weekly close.
Two Possible Paths In The Short Term
Looking at the candles and support zones drawn on the chart above, the analysis outlines two different bullish possibilities. The first is what the analyst calls an April 7th moment.
On April 7th earlier this year, XRP experienced a sharp dip that saw it lose the stable $2 support level back then before finally settling at $1.79. This sharp dip brought the price down to retest its ascending support line before bouncing strongly higher in the weeks that followed.
A similar move now would see the asset retreat toward the trend line. This time, the price target is around $2.40, which is highlighted with the pink circle in the chart above. This will effectively reset momentum before launching into the next leg of the rally.
The second outcome, however, would play out without the need for that deeper correction. If the $2.72 support zone continues to hold, XRP could turn higher from its current price and begin reclaiming levels above $2.90 and $3.00 much sooner. This scenario would represent a more direct continuation of the bullish trend, with buyers stepping in aggressively to defend current support.
Both outcomes differ in their immediate impact on price action, but each route ultimately leads to the same destination: higher levels for XRP. At the time of writing, XRP is trading at $2.88.
Featured image from iStock, chart from Tradingview.com
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