XRP Price Today is Trading Near $2.37 After a Sharp Breakout Earlier This Week

XRP price today is trading at $2.37 after a sharp breakout earlier this week pushed it above the long-standing descending trendline. This breakout came following multiple rejections around the $2.15-$2.20 area and was accompanied by a surge in volume, indicating strong buyer conviction.

The breakout also coincided with a clean bullish flag structure emerging on the 4-hour chart, with price now attempting to form higher lows above $2.34 and remaining within the midline of the channel.

On the daily chart, XRP has now broken above its April trendline and re-entered the $2.35-$2.45 consolidation zone. This level was previously tested multiple times in Q1, with price finding both support and resistance within this range.

The breakout candle on May 9 was aggressive, with XRP jumping nearly 15% in a single session to set off the latest XRP price spikes. However, price action has since stalled as bears defended the upper boundary of the flag at $2.47.

Rejection from that level has led to minor retracement, but XRP price volatility remains high, keeping traders focused on short-term support zones.

XRP price action is now veering towards the lower boundary of the 4-hour Bollinger Bands, which are remaining quite wide. The 20-EMA is providing support at $2.34, while price is also pivoting between the 50-EMA at $2.27 and the psychological $2.30 handle.

A breakdown below $2.30 would open the door for further decline toward $2.15. But if bulls can maintain momentum, aiming for another challenge of $2.47-$2.50.

On the 30-minute chart, RSI has cooled to 41.8 after nearing overbought territory during the breakout, showcasing a pause in bullish strength. However, no sharp reversal is evident yet.

MACD on the same timeframe shows weakening bullish momentum, with the signal line slightly crossing above the MACD line. These signals suggest that the immediate uptrend is pausing, and a minor consolidation or retest could unfold before another push.

In the broader XRP price update, a favorable trend is evident on higher timeframes. On the weekly chart, XRP is holding comfortably above the 0.5 Fibonacci retracement at $1.91 and approaching the 0.382 level at $2.26.

A weekly close above $2.30 would be a strong bullish confirmation and may open the path toward $2.69, which is the 0.236 Fib resistance and a major long-term barrier.

While XRP price slipped from $2.47 to $2.34 in the past 24 hours, this drop is more likely a healthy retracement within a bullish continuation setup than a reversal.

The sell-off has found demand near the midline of the flag channel and above the 20-EMA, with no breach of prior breakout structure. Volume on the retracement is also lower than on the breakout candle, and the Bollinger Bands are remaining expanded, generally indicating ongoing strength.

For now, the answer to why XRP price going down today is simple: profit-taking after a parabolic move. But until $2.30 breaks on high volume, the bullish case remains intact.

That said, any sharp rejection from $2.47 again could trigger a retest of $2.20 and possibly $2.05. Conversely, a breakout above $2.47 will likely bring quick moves to $2.69-$2.75, aligning with upper channel resistance and the February swing high.

Heading into May 12, traders will be watching closely whether XRP can consolidate above $2.34 and test $2.47 again. Momentum remains with the bulls, especially if the market mood stays risk-on and Bitcoin can hold gains above $65,000.

The technical structure favors continued upside unless XRP drops below $2.30 with strong selling pressure.

For earlier insights into this breakout structure, refer to our May 10 XRP forecast where we discussed the critical breakout zone at $2.20 and the trendline pivot.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

May 12 | 09:03 PST | Updated: May 12 | 10:06 PST

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