XRP Primed for Explosive Rally as Bullish Momentum Returns

XRP bulls are back in the driver's seat—and this time, they're flooring it.

After weeks of sideways action, the remittance token shows signs of life as buying pressure mounts. Chart patterns suggest we're not looking at a dead cat bounce, but the real deal.

Key levels to watch

The $0.55 resistance just became support—a classic bull flag confirmation. Whales have been accumulating at these levels while retail traders were busy chasing meme coins.

Market mechanics at play

Futures open interest is creeping up without excessive leverage (for once). That rare combo of spot buying and healthy derivatives activity could fuel the next leg up.

Just don't tell the SEC—they're still trying to figure out if XRP is a security, a commodity, or an existential threat to their job security.

XRP Price Eyes Fresh Rally

XRP price started a fresh decline below the $3.250 support zone, underperforming Bitcoin and Ethereum. The price declined below the $3.20 and $3.050 support levels.

The decline was such that the price traded below the $3.00 level. A low was formed at $2.959 and the price is now correcting losses. There was a MOVE above the 23.6% Fib retracement level of the recent decline from the $3.650 swing high to the $2.959 low.

Besides, there was a break above a key bearish trend line with resistance at $3.240 on the hourly chart of the XRP/USD pair. The price is now trading above $3.250 and the 100-hourly Simple Moving Average.

On the upside, the price might face resistance near the $3.30 level and the 50% Fib retracement level of the recent decline from the $3.650 swing high to the $2.959 low. The first major resistance is near the $3.3850 level. A clear move above the $3.3850 resistance might send the price toward the $3.450 resistance.

Any more gains might send the price toward the $3.50 resistance or even $3.5120 in the near term. The next major hurdle for the bulls might be near the $3.650 zone.

Another Drop?

If XRP fails to clear the $3.30 resistance zone, it could start another decline. Initial support on the downside is near the $3.20 level. The next major support is near the $3.150 level.

If there is a downside break and a close below the $3.150 level, the price might continue to decline toward the $3.050 support. The next major support sits near the $3.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

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

Major Support Levels – $3.20 and $3.150.

Major Resistance Levels – $3.30 and $3.3850.