XRP Needs to Shatter $2.50 Resistance to Fuel Next Rally
XRP’s path to higher valuations hits a brutal wall—a thick cluster of sell orders stacked at $2.50. Until that barrier breaks, bulls are stuck playing defense.
Key level to watch: The $2.50 zone isn’t just psychological resistance—it’s where bagholders from the 2021 cycle finally break even. Cue the ’this time it’s different’ chorus from crypto Twitter.
Bottom line: No asset moves up without absorbing liquidity first. And in crypto? That usually means shaking out weak hands while Wall Street snickers about ’digital gold.’
Key technical points,
- Major Resistance: $2.50 zone (0.618 Fibonacci, VWAP, Point of Control)
- Weak Volume Profile: No evidence of strong institutional backing
- Deviations at Extremes: Historical fakeouts hint at a repeat pattern
The $2.50 level is where several powerful indicators converge: the 0.618 Fibonacci retracement, the Volume Weighted Average Price, and the Point of Control from the current trading range. This creates a cluster of resistance that’s both technically significant and psychologically relevant, making it a likely spot for rejection if momentum doesn’t shift quickly.
Looking back at recent price action, XRP previously faked a breakout above its range high, closing multiple candles above resistance only to be dragged back inside the range, a textbook deviation. That same behavior may now be forming on the support side. If price were to break below the channel low only to reclaim it with force, it could mirror this deviation structure and signal a strong swing entry opportunity.
Currently, this downside deviation hasn’t materialized, but if resistance at $2.50 continues to hold and sellers step in, the probability of this setup increases. A clear rejection could send XRP back down to the channel’s lower bounds, potentially offering another opportunity for bulls if support holds again.
What to expect in the coming price action
Until XRP breaks above $2.50 with strong volume and confirmation, this region remains a brick wall. A rejection here could push price back toward support, but if bulls manage a decisive breakout above this confluence, it would open the door to much higher prices. For now, watch volume closely. It will be the first clue as to whether XRP is ready to run or retreat.