XRP fails to break the $2 mark for the third time, triggering technical signals for savvy traders to watch closely. Despite institutional advancements, price action remains detached. This stark contrast raises crucial questions about the asset's near-term trajectory.
The $2.00 level has established itself as a veritable Maginot Line for XRP. During the last three breakout attempts, sellers have systematically regained control, pushing the price back to lower levels. This accumulation of rejections at the same technical level creates what chartists call a reinforced resistance zone.
The repetition of this bearish pattern is not insignificant. Each failure weakens the conviction of buyers and strengthens the position of sellers who defend this level with determination. The Point of Control has formed between $2.00 and $2.05, confirming these sales at this level.
This corresponds primarily to the middle of the range formed by XRP between $1.87 and $2.20. However, XRP remains stuck in the lower part of this range. As long as XRP does not regain this POC, it has a strong chance of returning toward the bottom of its range.
Nevertheless, the 4-hour chart shows bullish CVD divergences, indicating increased accumulation since yesterday. The bottom could be closer than ever, and the trend reversal as well.
Technical traders are now monitoring two main scenarios. A fourth rejection could trigger a more pronounced correction toward the support zone located between $1.70 and $1.80. Conversely, a confirmed break above $2.00 with significant volume would open the way for a bullish extension toward $2.30 to $2.50.
The current situation of XRP perfectly illustrates the disconnect that can exist between regulatory progress and price performance. Despite notable progress by Ripple in its discussions with U.S. regulators and the growing adoption of its cross-border payment solutions, the market does not yet seem ready to integrate these positive elements into the asset’s valuation.
This divergence between fundamentals and price action creates tension that will have to resolve one way or another. Either the market will eventually recognize the value of institutional progress and propel the price beyond the current resistance, or other macroeconomic factors will continue to weigh on the valuation.
However, in itself, XRP remains a risky asset and is not immune to declines. Even Bitcoin suffered a drop of more than 70% in the previous bear market, despite a market cap far superior to XRP’s.
Favor range trading in this type of sideways movement, buying near support and selling as resistance approaches.
For investors with a longer-term vision, this consolidation period may represent an opportunity for progressive accumulation. However, it remains essential to define clear invalidation levels. A daily close below $1.70 would call the bullish scenario into question and suggest a deeper correction.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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