XRP finds itself at a critical juncture. After failing to overcome the $2.60 resistance, its price is now trending towards a crucial demand zone. The token continues to fluctuate sideways within a broad range, highlighting increased uncertainty as the wider crypto market experiences renewed selling pressure. Despite a recent strong performance, buyers are struggling to maintain upward momentum, and this inability to break higher leaves XRP susceptible to further consolidation or even a downward move.

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The prevailing risk-averse sentiment across the market is making it challenging for altcoins like XRP to establish a clear direction. Investors are maintaining a cautious stance, and now bulls must defend key support levels to prevent a more significant price correction. XRP is fast approaching a critical demand area which could very well dictate its trajectory in the short term.

Crypto analyst, Ali Martinez, shared his perspective on X, suggesting a potentially bullish scenario if XRP can successfully break through the $3 mark. According to Martinez, such a breakthrough would negate the current head-and-shoulders pattern that’s forming on the chart, effectively shifting the outlook in favor of the bulls.

XRP Faces a Key Breakout Test Amidst Market Uncertainty

XRP’s price is nearing a make-or-break point in its structure, where a breakout above key levels could ignite a substantial uptrend. However, investors are approaching this moment with caution, as many fear the current setup might be a bull trap—especially given the shaky macroeconomic landscape. Since late January, financial markets have been experiencing increased volatility, largely fueled by trade war anxieties and unpredictable policy decisions from the U.S. President at the time, Donald Trump. This uncertainty has cast a shadow over riskier assets, including cryptocurrencies, and continues to hinder the formation of clear trends across the board.

XRP’s price movement mirrors this broader market hesitancy. While the token has demonstrated some resilience, it remains confined within a wide trading range, unable to generate sustained bullish drive. The recent failure to surpass the $2.60 resistance level has amplified investor concerns, as selling pressure seems to be resurfacing in the market.

Martinez offered his analysis on the situation, pointing to a crucial technical level that could determine XRP’s short-term direction. As Martinez explains, if XRP manages to break above the $3 threshold, it would invalidate the head-and-shoulders pattern currently taking shape on the chart—a pattern often seen as a precursor to trend reversals. Such a move would flip the market sentiment to bullish and pave the way for a significant rally.

However, until such a breakout materializes, the head-and-shoulders pattern remains a factor, and the potential for downside risks cannot be disregarded. Investors are keeping a close eye as XRP trades around these critical support and resistance levels, understanding that the next breakout or breakdown could set the tone for its direction in the weeks ahead. For the moment, XRP is caught in a tense standoff between bearish pressures and bullish possibilities.

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Bulls Defend Key $2.20 Support Level

XRP is currently trading at $2.22 after losing the important $2.40 level, which coincides with both the 4-hour 200 moving average (MA) and the exponential moving average (EMA). This drop below support has weakened short-term bullish momentum, putting buyers on the defensive as selling pressure starts to mount. The $2.20 level is now a critical support area that must hold to prevent a deeper price correction.

For XRP to regain its footing and shift momentum back in favor of the bulls, it needs to reclaim the $2.35 level in the upcoming trading sessions. A move back above this resistance area would signal renewed buyer interest and could potentially trigger another push towards the $2.60 range. Until then, the price action remains fragile, and investors are keenly observing for confirmation of the next move.

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On the other hand, if XRP fails to maintain support above $2.20, we could witness a sharp decline towards the $2.00 mark—a significant psychological and structural support level that has held firm during previous corrections. Such a move would likely reinforce bearish control in the short term and further postpone any potential breakout attempt. As volatility continues to increase, the next few hours could be pivotal in determining XRP’s short-term trend.

Featured image from Dall-E, chart from TradingView