XRP Profit-Taking Areas Highlighted Amid Ongoing Market Momentum

Following XRP’s recent rally and subsequent pullback, market analysts, including the respected Arthur, have spotlighted potential profit-taking zones and key levels to watch. 

With XRP trading near $2.54, the focus remains on whether the cryptocurrency can sustain its upward momentum or succumb to bearish pressure.

XRP Price: Weekend Rally and Symmetrical Triangle Breakout

XRP price action over the weekend, particularly its surge to $2.60, marked a significant bullish breakout from a symmetrical triangle pattern on the daily chart. 

This rally, accompanied by rising momentum and trading volume, placed XRP back in the spotlight as traders speculated on its next move.

Sources: TradingView

Arthur, however, cautions that while such patterns often signal larger price movements, confirmation of the uptrend is crucial. 

Price stability above key support levels, such as $2.50, could validate bullish sentiment and encourage further participation from investors.

Trading Volume and Market Sentiment

A closer look at trading volume during the pullback reveals subdued activity, suggesting hesitation among sellers. 

Arthur interprets this as a sign of potential market consolidation rather than the onset of a bearish trend.

Read Also: Ripple (XRP) Price Prediction 2025, 2026-2030 and 2031-2035

The Relative Strength Index (RSI), currently at 59.72, indicates moderate bullish sentiment, leaving room for further price appreciation without entering overbought territory.

Sources: TradingView

Key Levels for Traders

Arthur outlines several critical levels that could shape XRP’s near-term trajectory.

Support Levels

$2.50: Critical for maintaining upward momentum.

$2.20 and $1.80: Deeper support zones in case of a breakdown.

Resistance Levels

$2.80: The next major hurdle.

$3.00: A psychologically significant level that could see profit-taking activity.

Read Also: How to buy XRP (XRP)

Breaching the $2.80-$3.00 liquidity zone could trigger stop-loss orders from short sellers, potentially fueling additional buying pressure. 

Conversely, a dip into the $2.20-$1.80 range might attract accumulation, setting the stage for a rebound.

Potential Scenarios for XRP

Arthur presents two possible outcomes for XRP’s price action in the near term.

Bullish Scenario

XRP retests $2.50 as support, maintains momentum, and rallies toward $2.80 or $3.00.

A breakout beyond $3.00 could pave the way for further price discovery.

Read Also: XRP Price Prediction for Next Week, Ripple Price Forecast for the 3rd Week of January

Bearish Scenario

Selling pressure intensifies, pushing XRP back into the symmetrical triangle pattern.

Prices could retrace to $2.20 or $1.80, testing lower liquidity zones.

In both scenarios, Arthur emphasizes the importance of monitoring trading volume for signs of market conviction.

Market Sentiment and Outlook

Despite the pullback, Arthur remains optimistic about XRP’s potential. The weekend rally demonstrated strong bullish momentum, and the subdued volume during the correction suggests that the market may be absorbing its gains rather than reversing course.

As XRP continues to trade near $2.54, the coming days will be pivotal in determining its direction. Investors and analysts alike will closely monitor key levels and liquidity zones as the asset navigates this critical juncture.

Read more about XRP: 

XRP (XRP) Price Today

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XRP to USD: Convert Ripple to US Dollar

FAQ

What are the key support and resistance levels for XRP currently?

Support Levels: $2.50 (critical for maintaining momentum), $2.20, and $1.80 (deeper support zones in case of a breakdown).

Resistance Levels: $2.80 (major hurdle) and $3.00 (psychologically significant, where profit-taking might occur).

What does XRP's trading volume indicate about market sentiment? 

The subdued trading volume during the recent pullback suggests consolidation rather than a bearish reversal. This indicates hesitation among sellers and potential preparation for the next move.

What scenarios are analysts predicting for XRP’s near-term price action?

Bullish Scenario: XRP holds above $2.50, rallies past $2.80, and potentially breaks $3.00, triggering price discovery.

Bearish Scenario: Selling pressure pushes XRP below key levels, retracing to $2.20 or $1.80 while testing lower liquidity zones.

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