XRP Price Holds Strong Above Key Support Despite Mixed Technical Signals. Will We See $3 In The Coming Weeks?

XRP (XRP) has been demonstrating notable strength in recent trading sessions, holding firm above critical support zones despite facing mixed technical indicators. The token is currently hovering around $2.26, after posting three consecutive green daily candles, followed by a modest pullback of just over 1% on Tuesday.

The broader cryptocurrency landscape remains steady, with Bitcoin maintaining levels above $94,000, creating a favorable environment for XRP’s continued consolidation and potential upward movement.

XRP Technical Analysis: Strength Within a Descending Channel

XRP continues to trade within a descending channel pattern, but since bouncing off its yearly low of $1.61 on April 7, the token has been gaining bullish traction. This recovery is fueling optimism about a potential breakout.

Key support levels to watch lie at the 50-day EMA ($2.20) and the 100-day EMA ($2.22) both of which have consistently held during recent price dips. These zones offer attractive buy-the-dip opportunities for traders betting on a larger rally.

What’s more, XRP is currently trading above its 50-day, 100-day, and 200-day EMAs, all of which are trending upward, indicating continued positive market momentum.

Indicators Signal Possible Consolidation Phase

On the daily timeframe, the Relative Strength Index (RSI) currently sits at 58.11, a neutral reading that allows for movement in either direction. However, with the RSI still holding above the midline of 50, the bullish bias remains intact.

The MACD (Moving Average Convergence Divergence) presents a more measured outlook. Although the MACD line remains above the signal line, a typically bullish sign, the shrinking histogram suggests waning momentum, hinting at a potential slowdown in upward pressure.

Bollinger Bands analysis shows XRP trading near its upper band, indicating that the asset may be entering overbought territory. The bands have also begun to tighten, which could precede a volatile price swing, either upward or downward.

To extend its upward run, XRP must first break through resistance at $2.40. Further resistance may emerge at $2.80 and $3.00, where prior supply zones could challenge further gains.

What’s Driving XRP’s Price Movement?

Several fundamental developments are influencing XRP’s market dynamics. One of the most closely watched is the ongoing settlement discussions between Ripple Labs and the SEC. Recently, both parties agreed to a temporary pause in the appeals process, raising hopes for a potential resolution.

Meanwhile, speculation around the approval of futures-based XRP ETFs has added bullish sentiment to the mix. However, ProShares has clarified that no spot XRP ETF will be launched on April 30, despite earlier rumors. Instead, the firm will offer futures-based XRP products, including leveraged and inverse ETFs.

According to Coinglass, derivatives activity shows a slight 0.09% increase in Open Interest, pushing it to $4 billion, suggesting new positions are being initiated. Still, the long/short ratio stands at 0.9559, leaning slightly towards short positions, an indication that some traders remain cautious.

In the past four hours, over $350,000 worth of long positions were liquidated, compared to just $59,000 in shorts, a signal that some bullish traders are being squeezed out of the market.

What to Watch Next for XRP

If XRP fails to hold its current support levels, it could revisit the 200-day EMA around $1.98. In the event of a broader market downturn, a deeper correction to $1.80 is possible.

As the end of April approaches, all eyes are on XRP’s ability to stay above the crucial $2.20 support level. This level could act as a pivot point that determines whether the token resumes its uptrend or slips into deeper correction territory.

XRP remains in a consolidation phase but is well-positioned to break out if bullish sentiment returns. While technical indicators present a mixed outlook, solid support from moving averages and fundamental developments, like the SEC settlement and ETF speculation, are keeping investor interest alive. Stay tuned, as XRP’s next major move could unfold in the coming days depending on market sentiment, macro developments, and Ripple's legal progress.