XRP bounces off support zone
XRP, the native token of the XRP Ledger (XRPL), is drawing renewed attention as it navigates a delicate balance between bullish catalysts and growing headwinds.
In recent sessions, XRP slipped under pressure, partly due to macro forces such as a stronger US dollar, shifting Federal Reserve (Fed) expectations, and tepid momentum across the broader crypto space.
Despite the pullback, several structural and sentiment-based drivers suggest upside potential remains alive.
Open interest in XRP futures has surged to its highest levels since January, signalling heightened trader confidence amid speculation about imminent exchange-traded fund (ETF) approvals.
Regulatory developments and ETF-related expectations play a central role in market positioning. The SEC has not yet greenlit spot XRP ETF listings, but the buildup of filings and regulatory signals continues to influence investor behaviour.
XRP’s technical positioning also offers an intriguing narrative. The token has generally held firm above the $2.7000 support level, even as it faces resistance in the $3.1200-to-$3.2000 zone.
If it can reclaim momentum and break above these resistance levels, it could reignite interest from momentum traders and signal the start of a more sustained rally.
However, if it breaks below the $2.7000 support decisively, the path may lead toward re-tests of lower zones around $2.5000 and beyond.
The next few weeks may prove pivotal. Market watchers will closely follow any news on ETF approvals or regulatory clarity, as well as broader macro developments such as interest rate outlooks and strength in the dollar.
If XRP can maintain support zones, attract renewed institutional interest, and clear resistance levels, it may have scope to reclaim higher territory. But should external headwinds intensify, or sentiment shift, its upside could be constrained.
XRP bullish case:
XRP's third bounce off the $2.70 support region over the past couple of months may lead to the accelerated resistance line at $2.8890 being overcome with the mid-September low at $2.9558 being in sight, together with the 55-day simple moving average (SMA) at $2.9957.
Were it to be bettered, the $3.1000-to-$3.2000 region may be back in view.
Were these levels to be exceeded, the late July-to-August highs at $3.3306-to-$3.3826 would likely be next in focus.
XRP bearish case:
Were XRP to fall through the major $2.7284-to-$2.7009 August-to-September support zone on a daily chart closing basis, the May peak at $2.6542 would likely be revisited.
The mid-March high at $2.5878 and the 200-day SMA at $2.5351 may also be reached in this case.
XRP daily candlestick chart
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