XRP Price: Technical Analysis Points to Potential Break Above $2.50 Resistance

TLDR

• XRP is trading at $2.45, showing a 2.14% increase in the last 24 hours and forming a bullish inverted head and shoulders pattern
• 72.28% of traders on Binance Futures hold long positions on XRP, indicating strong bullish sentiment
• Derivatives data shows surging volume (60.98% increase to $4.52 billion) and a 167.91% rise in Options volume
• The SEC lawsuit against Ripple has been dropped, removing a major bearish factor that had affected XRP since 2021
• Analysts predict potential short-term breakout to $3 and possible long-term targets up to $27, with XRP ETF approval speculation boosting investor confidence

XRP has shown strong recovery on the price charts, trading at $2.45 with a 2.14% increase in the last 24 hours. This upward movement has sparked interest among traders about whether XRP can break through the key $2.50 resistance level and trigger a more extended rally.

Technical analysis shows XRP forming an inverted head and shoulders pattern, which is often a reliable signal of bullish momentum. The pattern shows the head at $1.99, while the right shoulder formed near $2.20.

The critical neckline for this pattern sits at $2.45. A breakthrough above this level could open the door for a move toward $2.60 and potentially higher targets.

Currently, XRP has gained 6% over the past seven days. However, it has experienced a 2% drop on the daily chart and continues to struggle against the $2.50 barrier.

Inverse Head & Shoulders pattern on $XRP with a target of $3.05

Price has broken the neckline, send it!! pic.twitter.com/fM9bIUXyJi

— Trader Edge (@Pro_Trader_Edge) March 25, 2025

Market sentiment appears strongly positive. Long/short ratio positions on Binance Futures reveal that 72.28% of traders hold long positions on XRP. This means most traders believe XRP’s price will continue to rise.

Only 27.72% of traders are betting against XRP with short positions. This ratio shows growing confidence in XRP’s potential to break through resistance levels.

The derivatives market provides additional evidence of growing interest. Trading volume for XRP has surged by 60.98%, reaching $4.52 billion. Open interest stands at $3.97 billion.

Even more impressive is the 167.91% increase in Options volume. These metrics suggest that market participants are actively speculating on XRP’s price movement, supporting the bullish outlook.

After five weeks of withdrawals, digital asset investment products have recorded massive inflows. XRP and Bitcoin led this positive trend, bringing in a combined $730 million. Ripple secured the second spot in these inflows.

XRP Price on CoinGecko

A major factor driving optimism is the resolution of XRP’s legal battle with the SEC. The lawsuit, which had been ongoing since 2021, has been dropped by the SEC. This development removes a significant bearish variable that had weighed on XRP.

Legal expert Jeremy Hogan speculated that if the victory includes nullifying previous rulings, XRP could return to the market stronger than before. Earlier rulings had banned XRP from being sold to institutional clients and investors.

Another potential catalyst for XRP is the speculation around XRP ETF approval. Polymarket bettors have reached a new high of 87%, betting that the SEC will approve a spot ETF for XRP in 2025.

If approved, these ETFs could accelerate institutional adoption of XRP and attract significant investments. This would give XRP more legitimacy and potentially push it into mainstream status.

Technical Analysis

On the technical side, XRP has broken an important resistance level represented by the 50-day exponential moving average (EMA). This EMA can now serve as a support level and potentially boost XRP above the $3 mark.

The Relative Strength Index (RSI) shows 59, representing a neutral condition for the XRP market. This, combined with the recent breakout, suggests that a price surge may occur in the coming days.

Other technical indicators also point to positive momentum. The Moving Average Convergence Divergence (MACD) value of 0.334 indicates strong short-term momentum. The Rate of Change indicator has recorded 10%, marking positive price movement.

Analyst Egrag Crypto has projected that a breakout above the $3 resistance could send XRP to $6 in the short term. His long-term prediction suggests XRP could reach as high as $27 in the coming years if conditions remain favorable.

Despite these positive signals, XRP has been moving sideways with short-term bounces. A larger bearish divergence remains active on the 3-day chart, suggesting that significant upward momentum might face challenges in the near term.

Support levels for XRP are found between $2.24 and $2.30, with additional support in the $1.95 to $2.05 range. On the resistance side, key levels include $2.59, followed by stronger resistance between $2.65 to $2.80, and another barrier at the $3 mark.

In summary, XRP shows promising signs for a potential breakout above $2.50, with both technical patterns and market sentiment supporting bullish momentum.

The post XRP Price: Technical Analysis Points to Potential Break Above $2.50 Resistance appeared first on Blockonomi.