- XRP’s bull flag structure is nearing resolution, with a breakout or breakdown expected soon.
- Resistance levels to watch include $2.42 and $2.52, while support lies at $2.29 and $2.24.
- The resolution of this pattern could set the tone for XRP’s next significant price move.
XRP could be close to a significant point and for this, it is trading within a constricting bull flag on the daily chart. The cryptocurrency has arrived at a level that does not allow much opportunity for price action within the given structure implying a breakout could happen very soon.
Resistance Levels in Focus
According to current keys, a key area of resistance for XRP is situated at $2.42, $2.52, $2.72, and a further resistance area at $5.85. These are the prices that remain a hurdle that XRP has to hurdle in order to affirm the bearish continuation. A breakout above the immediate resistance at $2.42 might pave way for further gain in the price beyond $2.72.
The importance of these kinds of resistances is found by total market stats such as sentiment and volume. A move above these points would seem to have a spillover effect of attracting more buyers which further fuels the bulls charge.
Strong Support Zones Provide Stability
On the other hand, XRP also has key support levels that many traders watch at the same time. These include $2.29, $2.24, $2.10 and $2.02. These levels act as support to the coin reducing the chances of the price breaking down from the bull flag.
The presence of multiple support zones suggest that buyers may have some challenges to force a lower price by the sellers. But if XRP cannot hold these supports, there will be a deeper retracement that will change the outlook for now that rises.
The direction on the medium-term outlook of XRP will most probably be determined by the resolution of the bull flag pattern. A sharp trend higher will support the bullish formation and open the door to further holds. On the other hand, if this occurs it may be an indication that a current rally has peaked and consolidation or correction is taking place.
