Technical Outlook for XRP
XRP is approaching a critical resistance level at $2.28, which represents the upper boundary of its descending channel. A confirmed break above this level could pave the way for a potential move towards $2.75.
The pair XRP/USD is nearing a significant barrier around the $2.28 mark, an area of considerable interest for short-term traders. The price action has been contained within a descending channel established since early October, characterized by lower highs and lower lows, even during periods of brief rebounds above $2.00.
On-chain analysts and chart observers have identified $2.28 as a major resistance zone. Analyst Ali Martinez has highlighted that this level aligns with the 0.618 Fibonacci retracement and the upper edge of the descending channel. Multiple recent attempts to break through this band have been met with selling pressure, capping advances in the short term.
Martinez further explains that a decisive break above $2.28 could open up potential for a continuation towards $2.75. Traders are associating the $2.75 level with the 0.236 Fibonacci level and a former support area that is now acting as resistance. Above $2.75, a significant cluster of buy orders is observed around the $2.90–$3.00 range, where long-term holders have historically realized profits following previous rallies.
XRP (Ripple) Technical and Fundamental Analysis
From a technical standpoint, XRP is currently undergoing a consolidation phase after reaching its monthly high near $2.20 USD. The Bollinger Bands are showing signs of narrowing, which suggests a temporary decrease in volatility. The upper band is currently situated at $2.18 USD, the lower band is near $2.08 USD, and the 20-day moving average, representing the middle band, is positioned around $2.12 USD.
Should XRP manage to sustain its price above this moving average, it could trigger a new upward movement targeting $2.25 USD. Conversely, a decline below $2.10 USD might lead to a retest of the crucial support level at $2.00 USD.
The Relative Strength Index (RSI) is currently at 58 points, indicating a near equilibrium between buying and selling pressures. The MACD indicator remains neutral, awaiting a clear directional breakout from the current trading range. The observed decrease in trading volume further supports the notion of a market pause preceding the next significant directional move.
Fundamental Developments for Ripple
On the fundamental front, Ripple continues to strengthen its presence within the global financial landscape. Ripple Labs recently announced the establishment of new partnerships with central banks, focusing on the development of Central Bank Digital Currency (CBDC) solutions, particularly in Asian and Middle Eastern markets.
In parallel, the company's RippleNet is expanding its On-Demand Liquidity (ODL) services, which are designed to facilitate faster and more cost-effective international money transfers for major financial institutions.
On-chain metrics for XRP demonstrate consistent transactional growth. Daily transfers have increased by 6%, while exchange deposits have decreased by 3%, suggesting a phase of accumulation among large holders, often referred to as whales. The number of active wallets has surpassed 490,000 addresses, reflecting organic user growth and increasing adoption of the XRP Ledger network.