Lark Davis Updates His XRP Trading Setup as the Asset Attempts to Break Through a Major Technical Barrier

Davis shared on social media that XRP is currently testing its 50-day Exponential Moving Average (EMA). He feels this could be a setup for the price to move higher soon.

Crypto analyst Lark Davis has been keeping a close eye on XRP and has spotted a technical setup that could favor bullish bets on the asset. As the altcoin attempts to break through a major technical barrier, Davis has brought out a new XRP trading setup.

Highlighting that XRP is currently testing its 50-day Exponential Moving Average (EMA), which could set up the price for a move higher, Davis shared on social media that this is a good entry point.

Recent XRP Price Action and Support Test

The analyst also pointed out that XRP has recently retested support at the 20-day EMA (yellow line) amid profit-taking moves from traders.

To put this into perspective, XRP posted notable green candles on Tuesday and Wednesday, during which time it moved up 11.5%, from $2.06 to $2.30, before retracing to revisit lows near $2.10. However, XRP has since bounced off this support, a sign of strength from buyers.

At press time, XRP is trading at $2.20, up 1.17% today. Meanwhile, analysts like Davis believe more upside is possible. As a result, he suggested entry points, targets, and stop-loss levels for a short-term XRP long position.

Davis’s XRP Long Trade Setup: Entry, Target, Stop-Loss

According to Davis, he is entering a long position at $2.20 (betting on the price going up), and his target for taking profit is $2.45. Interestingly, this $2.45 target aligns with the long-standing trendline that has capped XRP’s price action since January 2025, when its previous rally ended.

Davis believes the current upswing could face rejection at this level, making it a strategic point to exit. This move would represent an 11–12% gain from the entry level, a return that could be even more amplified with leverage.

To manage risk, he said he’s placing a stop-loss order at $2.17, just under the 50-day EMA support to minimize downside risk if the setup fails. If the current attempt does not hold, Davis noted that a second opportunity could emerge around the 20-day EMA at $2.13.