XRP Price Analysis: Consolidation Precedes Potential Breakout Against Bitcoin (BTC)

XRP's recent rally has come to a halt after achieving highs near $3, leaving the market wondering what happens next. Amid the current uncertainty on the crypto market

XRP’s recent price action has seen highs of $3, followed by a cooling-off period. Now, the market is watching for a breakout against BTC.

Over the past few weeks, XRP has been a standout performer, gaining traction amid positive developments in the broader crypto market and positive sentiment around the Ripple USD (RLUSD) stablecoin launch.

XRP rose to highs of $2.90 on Dec. 3, while also reaching highs of $0.00003 in its Bitcoin pairing, a level last seen in May 2021.

However, after this feat, the rally seems to have entered a cooling-off phase. The XRP/BTC trading pair, which assesses XRP's relative strength to Bitcoin, has slowed and settled into a range, signaling that the next move could be pivotal.

Traders are eyeing the $0.0000265 and 0.00003 BTC levels as significant barriers for XRP. A breakthrough above these key levels could signal the next leg of the rally.

XRP’s rally may have paused, but the market is on the lookout for a clear direction on where it trends next. Whether XRP breaks out or declines, its next moves might shape its trajectory in the short term.

XRP/USD price analysis

At the time of writing, XRP was down 0.73% in the last 24 hours to $2.29. XRP has moved in a range since hitting highs of $2.90 on Dec. 3. The RSI around the midpoint indicates a balance between supply and demand, implying the likelihood of range trading between $1.90 and $2.90 in the coming days.

The recent price action has created a symmetrical triangle pattern, which is often regarded as a continuation pattern but sometimes acts as a reversal pattern. If the price rises and breaks above the triangle, the chances of a break above $2.91 increase.

A break and close below the triangle, on the other hand, may indicate that XRP has reached its short-term peak. Such a move might pull XRP to the 50-day SMA at $1.73.