XRP Shatters Descending Channel—$2.40 Price Target Now in Play

XRP bulls just got a technical green light. The asset punched through a stubborn descending channel—setting the stage for a potential run toward $2.40.

Breaking the pattern: After weeks of consolidation, XRP's breakout signals renewed momentum. Traders are now eyeing liquidity zones above current levels.

Why $2.40 matters: The target aligns with historical resistance levels. A clean break could trigger algorithmic buying pressure—assuming traditional finance doesn't 'risk manage' the rally into oblivion.

Watch the retest: Any pullback to the channel’s upper boundary must hold to confirm bullish continuation. No second chances in crypto’s zero-sum game.

TLDR

• XRP price broke above a descending channel at $2.20 with analyst targeting $2.40 as the next key level
• The token needs to break another descending channel at $2.2962 to reach the $2.40 target
• XRP must hold above $2.16 support to maintain bullish momentum, with failure risking a drop to $1.90
• Technical analysis shows dense liquidity above current levels around $2.40, suggesting potential short squeeze conditions
• Open interest has been climbing since June 24 with heavily negative premium and oscillating funding rates

XRP price has broken above a key descending channel at $2.20, setting up what crypto analysts believe could be a move toward $2.40. The development comes as technical indicators suggest the altcoin may be positioning for further upside movement.

Crypto analyst Egrag Crypto stated that XRP’s breakout above the descending channel at $2.20 represents a key technical milestone. The analyst noted that the token now needs to break another descending channel at $2.2962 to reach the primary target of $2.40.

#XRP – The Break-Out:

Th Green Descending Channel is Broken, Now we need the Pink Descending Channel to be broken.

Target to close above $2.40#XRPFamily STAY STEADY and STRONG 💪, Together We Rise 🌄and We Shall Fly So High 🦅 pic.twitter.com/ttVYbItLxK

— EGRAG CRYPTO (@egragcrypto) June 30, 2025

According to the analysis, a successful close above $2.40 WOULD put higher targets within reach. These include $2.55, $2.71, and $2.88, which could pave the way for XRP to reclaim the psychological $3 level.

The analyst’s chart showed that breaking these levels could set the stage for the altcoin to aim for a new all-time high. Egrag Crypto previously highlighted a ‘W’ pattern formation, which he believes confirms that a new ATH is possible.

The analyst provided longer-term price targets based on this bullish pattern formation. These targets include $15, $22, and $40, representing conservative, average, and optimistic scenarios respectively.

However, the analyst recommended that market participants take their initial capital at lower targets, starting around $6 to $7. He also suggested securing profits along the way rather than holding for maximum targets.

Critical Support Level Analysis

Crypto analyst CasiTrades provided a different perspective on XRP’s current price action. She stated that XRP needs to hold above $2.16 to maintain its bullish structure.

🚨XRP Needs to Hold This Level to Stay Bullish 🚨

After reaching $2.30 resistance, price wasn’t able to hold the $2.25 support level. Instead, it’s now pulling back to retest the top of the consolidation, ~$2.18 to $2.16. This isn’t a breakdown (yet), but this test matters.… pic.twitter.com/A3UGcbFGYK

— CasiTrades 🔥 (@CasiTrades) July 1, 2025

The analyst noted that after reaching $2.30 resistance, the price failed to hold the $2.25 support level. Instead, XRP is pulling back to retest the top of the consolidation between $2.18 and $2.16.

CasiTrades emphasized that this isn’t necessarily a breakdown yet, but the test of this level matters. She described this as a critical zone where holding above it keeps momentum intact.

The analyst explained that this price action confirms XRP is still in a breakout MOVE rather than just backfilling a structure. She noted that this type of price action is common, involving a breakout, rejection, quick retest, and then launch.

If XRP fails to hold above $2.16, CasiTrades warned it risks deeper downside and a broader trend reset. This scenario could open the door for the token to drop to $1.90 support.

Short Squeeze Potential

Analyst CryptoInsightUK highlighted potential short squeeze conditions developing in XRP. The analyst pointed to key on-chain and derivatives data showing dense liquidity stacked above current price levels.

The analyst described the liquidity situation as “super dense liquidity above us” and stated it’s “inevitable this gets taken, probably sooner rather than later.” Data indicates the lower liquidity cluster sits around $1.90, while the upper zone concentrates around $2.40.

Open interest has been steadily climbing since June 24, according to data from @velo_xyz. During this period, premium remained heavily negative and funding rates oscillated between positive and negative.

This suggests there have been net additions of short positions to the open interest for XRP. The analyst believes this crowded short trade could now be structurally exposed to a squeeze.

The implication is that shorts are vulnerable to a cascade of forced liquidations if price begins to accelerate upward. This could provide the catalyst for XRP to reach the $2.40 target level identified by other analysts.

At the time of writing, XRP is trading at around $2.19, down in the last 24 hours according to CoinMarketCap data.