XRP Price Tests $2: Is a Bullish Setup on the Horizon?

The price of XRP is currently testing the $2 support level as a pennant-style fractal takes shape, indicating a potentially bullish scenario if market buyers can protect this crucial support area.

Key Takeaways

XRP's price action is maintaining its position above a vital support zone between $2.00 and $2.06.
A pennant fractal formation has emerged, which can lead to a bullish breakout.
Consistent buyer support at this level strengthens the case for a price reversal.
If the pennant breaks upward, XRP could target the $2.64 resistance level.
A failure to hold above the $2 support could undermine the current bullish setup.

XRP’s current market activity shows a solid hold above the essential high-time-frame support zone. The price is persistently defending the $2.00 to $2.06 range, which has served as a critical structural support during various retests. Each return to this price level reflects increased buying interest, suggesting that accumulation is occurring.

With the emergence of a pennant-style fractal, there is potential for a breakout that could propel XRP towards higher resistance levels.

$XRP price holds support with a bullish fractal forming.$

Technical Analysis of XRP Price

$XRP price tests $2 as pennant fractal emerges: Bullish setup? - 1$
XRPUSDT (1D) Chart, Source: TradingView

XRP has consistently hovered above the $2.06 support area, which has demonstrated strong bullish defense over time. Each time XRP revisits this level, buyers have responded promptly, indicating that this area remains an essential accumulation point. This sustained defense creates a strong foundation that supports a developing reversal pattern.

The forming pennant strengthens this bullish outlook. Such formations typically occur following significant price movements, acting as consolidation structures before entering a new expansion phase. In this instance, XRP’s price is consolidating into a narrower range, continually bouncing off high-time-frame support. This behavior indicates that the market is gearing up for a breakout as liquidity becomes constrained.

As long as XRP remains above the $2 support level and within the pennant formation, the likelihood of an accumulation phase increases. This pattern is often a precursor to bullish expansions, particularly when it is established at a strong support level that has seen multiple retests. The robust buying interest at every price dip enhances confidence in continuation.

If XRP breaks above the pennant, the next major resistance target is anticipated around $2.64. This level has previously acted as a significant rejection point during the earlier cycle, representing a crucial liquidity cluster. An upward breakout would signal a shift back to bullish momentum, paving the way for further price continuation beyond short-term targets.

Looking Ahead: Price Action Expectations

Should XRP maintain its position within the $2.00 to $2.06 support range while adhering to the pennant structure, the chances of a bullish breakout will increase. A breakout above the upper trendline would enable XRP to target the $2.64 resistance and potentially beyond. Conversely, a move below the support level would delay any bullish sentiments and weaken the existing setup.