XRP Has Returned to a Familiar Holding Pattern

This type of price behavior is fairly typical for the token. Historically, it has entered long stretches of consolidation before breaking into major rallies.

XRP has been consolidating above a long-term upward trendline, according to crypto analyst Dennishhrndz who spotted the chart setup.

The coin’s price action is now fitting within a bullish compression setup, a tightening formation often compared to a ‘coiled spring.’ It shows limited downside but slowly building potential energy for a major breakout.

Since November 2024, XRP has been making higher lows. This pattern generally signals buying strength, even during periods of pullback.

Key Levels to Watch

Price is holding near $2.34, staying well above the key $2 level, giving XRP about a 14.5% buffer before hitting that threshold.

The major test for the token lies ahead at the $2.7 resistance mark. If XRP clears that level with strong momentum, analysts believe it could rally much higher.

“The longer this consolidates above trendline support, the stronger the breakout move will be,” Dennishhrndz said.

Momentum indicators are also resetting. The Relative Strength Index (RSI) currently sits at 50.88, considered neutral territory. This means price action is neither overbought nor oversold, setting the stage for a potential upswing.

At the same time, the MACD is showing a positive crossover. This suggests momentum is slowly turning bullish again, even though overall trading volume remains low.

Lower volume usually means weaker market conviction, but in cases like this, it can also hint at an upcoming breakout. Many large price moves in crypto have come after periods of low volume, followed by sudden spikes.

Two price zones have emerged as strategic entry points for investors. One key area to watch is between $2 and $2.20, which lines up with a main support zone. The second comes after a confirmed break above $2.7 with high volume, signaling continued movement toward higher targets.

If XRP breaks out above $2.7, a run to $3.50 becomes realistic. From there, $5 or more is possible, according to Dennishhrndz. These targets are supported by both technical signs and outside developments in the broader crypto market.

In a separate discussion, David Siemer, CEO of Wave Digital Assets, added more weight to that outlook. While he kept quiet about specific events, he expressed strong faith in the XRP community.

“The army is real,” he said, crediting loyal investors for their steady buying power – a force he believes could drive XRP back to its previous high of $3.50, or even higher.

Investor interest in an XRP spot ETF is also picking up quickly. On Polymarket, the approval odds have climbed to 83%, up from 73% earlier in May. Major firms such as Franklin Templeton, Bitwise, Grayscale, and CoinShares have already submitted their filings.

If the ETF gets the approval, it could create a surge in new investment – similar to what happened with Bitcoin ETFs earlier in 2024. That development could help XRP finally shake off years of slow movement and push toward fresh highs.