May 03, 2025 12:10
XRP’s price movement has been highlighted by a rejection at $2.35, followed by a bounce at $2.15. This initial rejection follows a brief rally in the last week of April, which, interestingly, saw it break above a downward-sloping resistance trendline that has defined its structure since early January 2025. However, the rejection has since been followed by a retest of this trendline, but this pullback is seen as a setup for a potential breakout to levels above $4 rather than an outright rejection. Trendline Breakout In Focus With Swing Failure Pattern According to a technical analysis on the TradingView platform, XRP/USDT is now pressing against the zone of a significant descending trendline on the daily candlestick timeframe chart. This trendline, which has guided the broader bearish structure since January 2025, was previously responsible for notable price rejections in February and March. However, the most recent interaction with this trendline appears different, and XRP may be shifting from a pattern of lower highs to a breakout and retest formation. Related Reading: Has The Dogecoin Price Already Topped? Indicator That Predicted Previous Tops Show When The notable development here is the sequence leading to the breakout attempt. XRP first surged upward in late April and moved above the trendline. But instead of collapsing back into the previous range, the price briefly retraced and formed a higher low, which is an important structural change in the bullish version of a swing failure pattern (SFP). In this case, the failed low formed after the breakout hints at a reversal of the prior downtrend, and this reversal was validated when XRP closed on April 30. As shown in the chart below, this swing failure pattern has now flipped bullish with volume rising, an early sign of a rebound and rally. Adding to this outlook, the trendline has been touched multiple times over the past five months, making a confirmed close above it very important. The white arrow drawn on the chart indicates the anticipated direction of the XRP price if the bounce is sustained. $3.00 Resistance Is Important For Next Price Explosion A bullish daily close above this trendline would break the bearish structure that has defined XRP’s price since the start of the year. If successful, this would open the XRP price to an eventual run above $4 if everything goes right. Related Reading: XRP Surpasses Ethereum In This Major Metric After Outperforming For 6 Months However, according to the analyst, the most immediate level to watch is the $3.00 resistance. A daily close above this round psychological level, combined with a volume spike, could open the way for XRP to surge toward the next key zones. These zones include $3.31, which coincides with the high on January 16, which is the next clear liquidity level. The next zone would be around its current all-time high. Beyond that, $4.6209 is the next longer-term breakout target. At the time of writing, XRP is trading at $2.20. Featured image from Adobe Stock, chart from Tradingview.com
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