XRP Coils for Explosive Upside Breakout—Price Squeeze Reaches Critical Tension

XRP's price action has tightened like a spring—and the market's itching for a bullish resolution.

After weeks of consolidation, the sixth-largest cryptocurrency by market cap shows all the classic signs of an impending breakout. Trading volume's drying up while volatility compresses to year-to-date lows. That's textbook coiling before a directional move.

The Bull Case: On-chain data reveals whales accumulating at current levels, while the 50-day and 200-day MAs just completed a golden cross. Retail traders, burned by last month's false breakout, remain skeptical—which ironically adds fuel for the upside.

The Bear Trap: Short interest on derivatives platforms hit a three-month high this week. If XRP punches through $0.55 resistance, we could see a violent short squeeze propel prices toward $0.68.

Meanwhile, Bitcoin's dominance keeps sliding—altcoin season's brewing whether the old-guard bankers like it or not. (Spoiler: They don't. Their 'blockchain not crypto' narrative looks shakier by the day.)

One thing's certain: When this symmetrical triangle finally breaks, it'll move fast. The only question is whether you'll be riding the wave or watching from shore.

XRP Price Eyes Upside Break

XRP price reacted to the downside below the $2.20 support zone, like Bitcoin and Ethereum. The price declined below the $2.180 and $2.150 support levels.

The pair tested the $2.120 support A low was formed at $2.120 and the price started to trade in a range. There was a minor recovery wave above the 23.6% Fib retracement level of the downward MOVE from the $2.335 swing high to the $2.120 low.

The price is now trading below $2.20 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance NEAR the $2.170 level. There is also a contracting triangle forming with resistance at $2.170 on the hourly chart of the XRP/USD pair.

The first major resistance is near the $2.20 level. The next resistance is $2.2280 or the 50% Fib retracement level of the downward move from the $2.335 swing high to the $2.120 low.

A clear move above the $2.2280 resistance might send the price toward the $2.250 resistance. Any more gains might send the price toward the $2.2850 resistance or even $2.320 in the near term. The next major hurdle for the bulls might be $2.350.

Another Drop?

If XRP fails to clear the $2.20 resistance zone, it could start another decline. Initial support on the downside is near the $2.1450 level. The next major support is near the $2.120 level.

If there is a downside break and a close below the $2.120 level, the price might continue to decline toward the $2.050 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $2.1450 and $2.120.

Major Resistance Levels – $2.170 and $2.20.