XRP Price Tests Key Resistance: Is a Breakout to $3 Imminent?

XRP tests key zone, can the token break out?

XRP's price is currently gaining significant attention as it approaches a critical trading zone that has influenced market movements throughout the year.

Key Takeaways:

XRP is currently priced at $2.66, showing a 1.5% increase over the last day and a 9.2% increase over the week.
The price is testing a significant trading range between $2.63 and $2.70.
With a newly launched spot XRP ETF attracting over $100 million in assets, institutional interest in XRP is on the rise.
A breakout above $2.70 could lead to a price target of $3, while falling below $2.63 could potentially see a decline to $2.45.

At the time of this report, XRP trades at $2.66, marking a 1.5% rise in the past 24 hours and a 9.2% increase over the week, according to market data from crypto.news. This rise aligns with an overall market uptrend, boosting the token into the $2.63 to $2.70 range.

Chart from TradingView showing XRP price.
XRP price chart showcasing key levels | Source: TradingView

This price range has been a critical zone since the beginning of the year, oscillating between acts of resistance and support through multiple daily chart tests. With XRP testing this area for the second time in October, market participants are keenly watching if it can maintain acceptance above it.

Additionally, fresh investment flows and positioning in derivatives have significantly contributed to this momentum. A recently launched spot XRP ETF has rapidly accumulated approximately $100 million in assets, and CME futures have reached multi-month highs in open interest, indicating stronger institutional involvement.

Moreover, Ripple USD (RLUSD) has surpassed a market capitalization of $900 million, illustrating heightened activity within the ecosystem. Both increased spot ETF assets and heightened CME futures open interest underline rising institutional engagement, giving the token more upward momentum as it seeks to break through this vital price level.

XRP Price Breakout Gains Momentum as Buyers Eye $3

The Ripple token has successfully broken out from a symmetrical triangle formation after several days of consolidation, moving into the $2.63 pivot zone that has confined its price since mid-October. The breakout candle has emerged above the upper trendline of the triangle, allowing buyers to remain in control during intraday trading.

Chart from TradingView showing XRP price and technical indicators.
XRP Daily Price Analysis | Source: TradingView

The relative strength index (RSI) is hovering around 54 and trending upwards, indicating that momentum is gaining strength following the compression phase. Trading volume remains robust at approximately 35 million for the day, enhancing the credibility of this price move rather than suggesting a weak false breakout.

If XRP can achieve a solid daily close and maintain its position above $2.70, it could open the path for a movement towards $3, with $3.09 as the next notable resistance level. A healthy pullback to retest $2.70 as support could occur, helping to establish a stronger foundation for continued upward momentum.

Should the $2.70 level transform into support during this retest, the next objective could shift towards the $3.60 region, aligning with the previous range ceiling set in July. On the other hand, if XRP fails to hold above $2.63, it would neutralize the breakout and increase the risk of a drop back towards $2.45 as momentum diminishes.