- XRP faces strong resistance at $2.22 and $2.55, with $2.85 and $5.85 as targets.
- Bearish RSI signals suggest a potential ABC correction toward $1.90 or $1.55.
- Regulatory events like an SEC settlement may trigger sharp moves in XRP’s price.
XRP, the digital asset powering the Ripple network, is showing signs of reaching a decisive moment in its price trajectory. With the token currently priced at $2.13, its recent 20.83% surge over the past week has caught the attention of market watchers.
However, analysts are signaling caution as XRP faces a key daily resistance. As momentum builds, both bullish and bearish scenarios are unfolding, suggesting traders should prepare for significant volatility in the days ahead.
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Resistance Levels Tested as XRP Eyes Breakout
According to technical analyst Dark Defender, XRP is pressing against a strong daily resistance zone, indicating a possible short-term bounce. He identifies $2.22 and $2.55 as crucial resistance levels.
If XRP manages to clear these barriers, it could open the path to long-awaited price targets at $2.85 and even $5.85. On the support side, $1.88 and $2.04 remain critical zones that could serve as strong foundations for a rebound.
Besides that, another positive signal lies in the expectation that this current resistance may fade within days. This suggests that XRP might soon gain clearer upward momentum. As such, traders could see this brief period of consolidation as an opportunity for strategic entry.
Bearish Signals Flashing Despite Recent Gains
Meanwhile, CasiTrades, another respected analyst, points to an alternative short-term outcome. XRP recently tapped $2.24, a level aligned with the .382 Fibonacci retracement.
This move sparked bearish RSI readings across several timeframes. Consequently, he believes XRP may now be in a reversal phase, entering an ABC correction before another upward wave.
Notably, $1.55 also coincides with a wave two correction as per Elliott Wave Theory. Either level could act as a new pivot point, laying the groundwork for a strong rally ahead.
Additionally, external events may heavily influence XRP’s direction. A favorable SEC settlement or ETF approval could rapidly boost prices. Conversely, prolonged regulatory delays or macroeconomic pressures may push XRP back toward the $1.70 range.
