The hourly chart of the XRP/USD pair shows a breakout above the descending trendline at $2.2350.This breakout signals strong bullish potential. If XRP manages a close above the $2.250 resistance, the price could gain momentum toward the $2.30 level. According to recent reports, 700 million XRP have been locked in escrow. 

XRP Shows Fresh Bullish Signals 

After finding solid support near the $2.125 level, token resumed its upward move. The token broke through the $2.150 and $2.20 resistance levels, painting a positive picture. The price also moved above the 23.6% Fibonacci retracement level from the $2.359 swing high to the $2.125 low. 

With the breakout of the descending trendline near $2.2350, token now tests a strong resistance at $2.250. The first major resistance stands at $2.30, aligning with the 76.4% Fibonacci retracement level of the same move. 

If bulls push the price beyond $2.350, Ripple could next target $2.420 and $2.450. Continued bullish momentum may even drive the price toward $2.50 and possibly $2.650 in the short term. 

Key Levels to Watch If XRP Drops 

If XRP fails to clear the $2.250 resistance, bears may take control. Sellers could drag the price back to the $2.20 support level. A further drop might push it down to the critical $2.180 zone. 

A clear move below $2.180 could send XRP toward $2.120, followed by a potential dip to $2.050. These levels will likely attract buyers looking for re-entry points in the short term. 

What Do Technical Indicators Say? 

MACD: The hourly MACD for XRP/USD is gaining strength in the bullish zone. 

RSI: The RSI is currently above the 50 mark, signaling sustained positive momentum. 

Key Technical Levels 

• Supports: $2.20, $2.180, $2.120 
• Resistances: $2.250, $2.30, $2.350, $2.420, $2.450, $2.650 

*DOES NOT CONTAIN INVESTMENT ADVICE*

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The post XRP Price Approaches $2.250 Resistance: A Breakout May Trigger Further Gains appeared first on Coin Engineer.

XRP’s price surged by over 300% in the past two months, trading at $2.10 on December 27. However, warning signs indicate that XRP/USD could erase at least 25% of these gains in the short term.

XRP/USD Daily Chart

XRP is Approaching a Descending Triangle Breakdown

XRP’s recent losses are emerging as its price trades within a descending triangle pattern, which is typically a bearish structure signaling further declines. This pattern is defined by a series of lower highs forming the descending trendline of the triangle, while the $2.10 level acts as horizontal support.

A decisive breakdown below the $2.10 support level could open the door to a deeper correction. The potential downside target for this breakdown is calculated by subtracting the height of the triangle from the breakdown point, according to technical analysis rules. In other words, XRP’s price could decline to around $1.64 in January 2025, approximately a 25% drop from the current price levels.

XRP Whales Are Taking Advantage of the Price Surge to Sell

On-chain data, along with metrics tracking whale addresses, supports the bearish outlook and reveals distribution sentiment. Notably, the supply held by XRP’s wealthiest investors (those with balances over 1 million tokens) has decreased by 180 million since the beginning of December.

XRP Supply in Addresses with a Balance of Over 1 Million

Meanwhile, the supply held by entities with a balance of 100,000 XRP has decreased by 170 million. The supply declines in both address groups align with XRP’s price drop of over 26% from its local top of $2.90.

XRP Supply in Addresses with a Balance of Over 100.000

Large-scale whale selling can create downward pressure on prices due to the increased token supply in circulation. Combined with the price decline, this suggests that selling activity has overwhelmed demand.

XRP Supply on Binance is Increasing

Additionally, XRP reserves on Binance, the largest cryptocurrency exchange by volume, have been steadily increasing since mid-December; this is typically considered a bearish signal, as it often precedes price corrections.

XRP Ledger Binance Exchange Reserves

The increase in exchange reserves supports profit-taking at local highs, contributing to XRP’s ongoing bearish momentum. Unless this trend reverses, as supply on exchanges grows and large investors continue to sell, XRP price could face a 25% downside risk.

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