Key point:
Whales continue to buy XRP, creating a steady tailwind on the altcoin’s price.
XRP (XRP) broke out from its long-term range on Friday and soared to $3.03 on Monday. XRP has since given back some of its gains, indicating profit-booking at higher levels.
However, analysts are bullish on XRP’s outlook. Veteran trader Peter Brandt said in a post on X that XRP had formed a “highly rare continuation compound fulcrum” pattern on the chart, which could propel the price to $4.47.
XRP whales also seem to be bullish on the prospects of a further rally. According to the onchain analytics platform Santiment, whale wallets holding over 1 million XRP soared to a new all-time high of 2,743 on Friday.
What are the crucial support and resistance levels to watch out for? Let’s analyze the charts to find out.
XRP price prediction
XRP has turned down from the overhead resistance of $3, but the pullback is expected to find support at $2.65.
If the price rebounds off $2.65, it suggests that the bulls are trying to flip the level into support. That enhances the prospects of a rally above $3. If that happens, the XRP/USDT pair could surge to $3.40. Sellers are expected to fiercely defend the $3.40 level, but the rally could extend to $4 if the bulls persist.
This optimistic view will be negated in the near term if the price turns down and plunges below the 20-day exponential moving average (EMA) ($2.49). That could keep the pair range-bound between $2 and $3 for some time.
Related: XRP price can see 'quick' run to new all-time highs if price breaks $3
The pair is taking support at the 20-day EMA on the four-hour chart. A minor negative is that the RSI has formed a negative divergence, signaling weakening momentum. If the price dips below the 20-day EMA, the pullback could reach $2.65.
Conversely, a solid bounce off the 20-day EMA suggests buying on dips. The bulls will then try to thrust the price above the $3 resistance. If they succeed, the pair may jump to $3.40.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.