XRP Breaks Through Resistance – Bulls Charge as Token Recovers Critical Levels

After months of sideways action, XRP just bulldozed through key resistance—flipping bearish sentiment overnight. The move triggers fresh liquidity pools as traders scramble to reposition.

Why this matters: The $0.55 barrier had become a psychological battleground. Today’s breakout suggests institutional players are finally stepping in, or at least pretending to while retail watches from the sidelines.

What’s next: Watch for a retest of the breakout zone. If it holds, we’re likely eyeing $0.75. If not? Well, there’s always another ‘game-changing partnership’ announcement to pump the charts.

*Cynical finance jab*: Meanwhile, traditional bankers still think ‘XRP’ is a typo for ‘RIP’—which might explain their 2017-era portfolios.

In Brief

• XRP breaks through a major technical resistance by exceeding $0.57, marking a decisive turning point for the asset.
• Positions on XRP were liquidated, revealing a strong 69 % imbalance in the derivatives market.
• The breakout of resistance triggered a wave of hedging buys, amplifying the initial rise in XRP’s price.
• Maintaining momentum will depend on volume’s ability to sustain the bullish pressure observed in the market.

A wave of liquidations propels XRP beyond a major resistance

Over the past 24 hours, XRP caused instability in the derivatives markets. According to CoinGlass data, the crypto recorded $4.08 million in liquidations, with a clear predominance for long positions.

“$2.60 million was liquidated on the side of traders betting on the upside”, the report specifies. Meanwhile, short positions only experienced $1.49 million in losses, generating a 69 % imbalance in the XRP futures market.

This dynamic was triggered after a rapid price spike to $2.22, followed by consolidation around $2.20.

The key elements of this recent evolution are :

• Total liquidation volume : $4.08 million in 24 hours ;
• Long positions liquidated : $2.60 million ;
• Short positions liquidated : $1.49 million ;
• Recorded imbalance : 69 % against long positions ;
• Price reached : a peak at $2.22 before stabilizing.

This sharp volatility trapped many optimistic investors who anticipated an immediate continuation of the rally. However, the market quickly underwent a correction, revealing persistent fragility in XRP’s bullish structure. It’s worth noting that the asset is currently attempting to form a golden cross, often interpreted as a bullish signal but requiring confirmation through strong volume support to avoid a negative reversal.

Adoption in Japan, declining volume, and threats to support

Alongside the turmoil in the futures market, XRP continues its expansion into new territories. The crypto is now available on Mercoin, a Japanese exchange platform, making it accessible to “20 million potential users”.

This opening could encourage increased adoption in a region historically receptive to cryptos. However, despite this market expansion, some technical indicators raise concerns. XRP’s trading volume dropped by 17.54 % over the same period, reaching $3.23 billion, indicating a potential cooling off of immediate demand.

This volume decline occurs in a context where XRP must absolutely maintain its momentum to avoid falling back below the critical $2.00 threshold. Analysts highlight that low buyer support could trigger a severe pullback if the positive momentum does not hold.

Moreover, the $2.50 level is identified as a crucial pivot zone for confirming a genuine bullish rally. If XRP fails to break through this resistance sustainably, the likelihood of an increased correction will rise considerably, undermining the confidence gained after the conclusion of SEC’s lawsuits against Ripple.

In this context, prospects for XRP oscillate between hope and caution. On one hand, expansion into new markets like Japan could provide solid fundamental support. On the other, short-term technical deterioration demands increased vigilance. In the short and medium term, trading volume as well as XRP’s ability to maintain its price above $2.00 will be decisive in evaluating whether the asset is ready to resume its ascent or faces a harsh downturn.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.