As the new trading week begins, Ripple (XRP) is showing encouraging signs of upward momentum after gaining approximately 0.93% on the 4-hour chart. With the price currently hovering around $2.45, technical indicators suggest XRP is preparing for a potential breakout toward key resistance levels. This analysis explores XRP’s latest price action through the lens of moving averages and market structure to guide traders on what to expect in the coming days.
XRP’s Recent Price Movement and Market Sentiment
Ripple has experienced notable volatility over the last few months, swinging between lows near $1.40 and highs around $3.00. After a sharp decline in April, the price found a stable floor above $2.00 and has since been attempting a measured recovery. Currently trading just above $2.44, XRP is steadily reclaiming ground.
The gradual upward trend aligns with improving market sentiment, bolstered by the cryptocurrency maintaining levels above its key exponential moving averages (EMAs). This price behavior indicates buyers are re-entering the market with conviction.
The Significance of Moving Averages in XRP’s Trend
The chart includes four EMAs representing the 20, 50, 100, and 200 periods, which are pivotal for analysing trend direction and momentum.
The 20-period EMA, currently around $2.41, acts as immediate dynamic support. XRP has bounced off this level several times in recent sessions, signaling short-term bullish strength. Just beneath it, the 50-period EMA near $2.40 is beginning to curve upward, confirming a shift toward a stronger medium-term trend.
Longer-term EMAs—the 100 at approximately $2.37 and the 200 near $2.31- are positioned below the current price, reinforcing an overall positive outlook. Historically, when shorter EMAs cross above these longer ones, it often marks the onset of sustained bullish momentum.
Critical Support and Resistance Zones for XRP
Traders must pay attention to specific price zones that could influence XRP’s next moves.
Immediate support clusters around the $2.40 to $2.41 range, defined by the 20 and 50 EMAs. Should this area fail to hold, XRP risks a pullback toward the 100 and 200 EMAs between $2.31 and $2.37.
On the upside, the $2.60 to $2.65 range serves as a crucial resistance level. This zone has capped price rallies in recent weeks, and a sustained break above it could pave the way for XRP to challenge the psychologically significant $3.00 mark.
Furthermore, XRP’s ability to remain above all major EMAs implies increasing buyer pressure. The narrowing gap between the 100 and 200 EMAs hints at an approaching “golden cross,” a classic technical signal of a bullish phase.
However, traders should wait for confirmation through continued price strength above resistance zones before assuming momentum will accelerate.
Strategic Outlook for Traders in the Coming Week
For traders favouring caution, waiting for XRP to close decisively above the $2.65 resistance on higher timeframes like the 4-hour or daily charts could help avoid premature entries.
Those with a higher risk appetite may consider entering near the $2.40 EMA support levels, placing stop losses just below the 100 EMA around $2.35 to limit downside exposure.
Effective risk management is essential, especially given XRP’s recent volatility. Limiting position sizes and using stop losses can help protect capital while allowing participation in a potential upward move.
Related article: XRP Shows No Reaction to Whale Activity, Prompting Investor Concern
Final Thoughts on XRP’s Weekly Prospects
Ripple has started the week in a technically favourable position, trading above all major EMAs and showing a steady near 1% gain on the 4-hour chart. This setup points to growing bullish momentum, but breaking through the key resistance zone near $2.65 remains crucial.
Should XRP overcome this hurdle, it could open the door to retesting higher levels close to $3.00. Until then, traders should monitor price action closely and maintain disciplined risk management.
The overall technical picture suggests cautious optimism for Ripple this week, offering well-timed opportunities for traders willing to follow the evolving trend carefully.
