XRP's Price Gap: Breakout or Breakdown?

XRP is navigating a critical price gap. Will it break out and reclaim $3.00, or will it fall back toward $2.50? ETF hopes and technical analysis weigh in.

XRP's Price Gap: Breakout or Breakdown?

XRP is at a crucial juncture, facing a significant price gap that could determine its next move. Will it break out and aim for higher targets, or will it succumb to the vacuum below? Let's dive into the factors at play.

The Crucial Price Gap

Crypto analyst Ali Martinez has highlighted a URPD gap for XRP between $2.51 and $2.73. This gap signifies a lack of on-chain activity in that price range, meaning fewer transactions have occurred there historically. Think of it as a no-man's-land for buyers.

Currently, traders are laser-focused on the $2.70 level. If XRP dips below this mark, it could slide further toward $2.50 due to the lack of buyer support in the intervening gap. Holding $2.71 is therefore key to maintaining the breakout narrative.

Technical Analysis: Ascending Triangle

From a technical perspective, XRP's four-hour chart shows an ascending symmetrical triangle. After a recent correction, the price has been retesting the base of this triangle. To regain bullish momentum, XRP needs to rally above the 100-period SMA, currently around $2.97. Beyond that, supply zones around $3.14 and $3.20 need to be reclaimed.

The ETF Factor

The potential approval of spot XRP ETFs is a major catalyst. The SEC has until mid-next month to make decisions on over a dozen applications. ETF inflows could provide the necessary push for XRP to break above the price gap and reach $3.20. However, even with positive ETF momentum, the risk of falling below $2.70 remains.

Analyst's Perspective: XRP and Bitcoin Ratio

Virtual Bacon points to the XRP/BTC ratio as a key indicator. If Bitcoin reaches $150,000 by late 2025 or early 2026, XRP could potentially hit $4.50, contingent on XRP restoring its exchange rate ratio to Bitcoin. Long-term targets of $9 to $10 are possible if Bitcoin approaches $200,000 and the XRP/BTC ratio sees a similar rise to previous cycle peaks.

Final Thoughts

XRP's journey is filled with potential pitfalls and possible breakouts. Keep an eye on that $2.70 level, watch for ETF developments, and maybe, just maybe, we'll see XRP surprise us all. After all, in the world of crypto, anything is possible! It's like watching a tightrope walker – nerve-wracking, but you can't look away.