XRP might be on the verge of a potential price breakout targeting the $3 spot based on its short-term technical setup.
To this end, the asset’s recent price action, where XRP tested the $2 support, is forming a bullish structure, signaling a possible “buy-the-dip” opportunity, according to an April 5 analysis by ImmortalAXS on TradingView.
The analyst noted that XRP recently experienced a liquidity sweep, dipping below previous lows into a known support zone around $2.
This move, often referred to as a “Swipe Liq / Adding more,” is a common tactic to trap sellers and collect liquidity before a sharp reversal. True to form, XRP quickly rebounded, suggesting a strong bullish reaction.
The analyst noted that a developing triple bottom pattern at the $2 support level further strengthens the case. Each dip into this zone has been met with aggressive buying, indicating heavy accumulation by market participants.
This repeated defense of the $2 area reinforces its importance as a key support level and sets the foundation for a potential upward move.
Now, the next major hurdle for XRP lies at $2.48, a strong resistance zone that has been rejected twice. Therefore, a clean break and hold above this level would mark a shift in market structure, flipping resistance into support, and could signal the start of a bullish continuation, especially if backed by volume and momentum.
If XRP convincingly breaks through $2.48, the next targets to watch are $3 and $3.40. These levels are psychological milestones and technically significant zones, aligning with previous price reactions.
However, a clear invalidation point remains; a close below $1.79 would break the current structure and suggest sellers are back in control. This level is a critical stop-loss zone for traders looking to manage risk.
Investors bullish on XRP price
Currently, XRP is trading in line with the broader cryptocurrency market, which remains subdued amid equities reeling from the recent traffic-induced sell-off.
Amid these conditions, on-chain data again indicates that most XRP investors are betting on the asset’s price rallying.
Specifically, data shared by prominent on-chain crypto analyst Ali Martinez shows that Binance futures trading data reveals that 70.33% of traders with open XRP positions are long, pointing to a strong bullish sentiment surrounding the cryptocurrency.
The data, shared on April 6, shows that only 29.67% of accounts are short, resulting in a long/short ratio of 2.37. This shift in sentiment could suggest growing confidence in XRP’s price potential.
XRP price analysis
By press time, XRP was trading at $2.07, having plunged 3.6% in the last 24 hours. Over the past seven days, the token is down nearly 4%.
As things stand, XRP is sitting above its 200-day simple moving average (SMA) of $1.76 but below the 50-day SMA of $2.38, suggesting long-term strength but short-term weakness.
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