XRP Breaks Structure With Power — Now The Real Test Begins At $2.41

Overview

XRP has recently experienced a significant surge, breaking through previous resistance levels with notable momentum. However, the cryptocurrency now faces a crucial test at the $2.41 cost-basis zone, an area where a considerable amount of XRP was previously accumulated. The price action at this level will be critical in determining whether the bullish trend can continue or if selling pressure will lead to a temporary pause.

XRP Approaches A Critical Cost-Basis Resistance At $2.41

XRP is currently at a pivotal crossroads, with its price action increasingly focused around the $2.41 level. This specific zone is recognized as a major cost-basis wall, where various technical and on-chain signals converge, making it a decisive point for the ongoing rally. The cost-basis distribution heatmap indicates that the $2.41 region is characterized by a dense supply cluster. Cost basis refers to the price levels at which tokens were previously acquired. As the price revisits these areas, it often attracts increased trading activity.

On-chain data reveals that between $2.39 and $2.41, approximately 1.56 billion XRP were accumulated. Many holders who entered positions in this range may look to exit to break even as the price approaches this zone again. This behavior could introduce selling pressure, reinforcing the $2.41 area as resistance. The price chart for XRP reflects this dynamic, showing repeated hesitation and multiple rejections around the same level. The alignment of on-chain supply data with technical price action underscores the importance of overcoming the $2.41 level decisively to unlock further upward movement.

Wave 3 Breaks Out Above The 2.618 Extension With Strong Momentum

In a recent analysis, it was revealed that XRP’s Wave 3 has achieved a powerful breakout, surpassing the 2.618 Fibonacci extension and clearing the macro resistance at $2.30. This breakout was accompanied by a strong Relative Strength Index (RSI) reading, indicating robust momentum behind the price advance. With Wave 3 extending higher, attention has turned to the $2.49 target, which aligns with the 0.618 Fibonacci extension of the fifth wave.

Despite the strength of this move, caution has been advised regarding a potential short-term pullback. Such a retracement could allow the RSI to cool off, fostering healthier conditions for the next upward leg and possibly setting up a clearer divergence for a renewed push. It is noted that as long as XRP remains above the macro 0.236 Fibonacci level, the broader bullish structure will remain intact. Analysts are closely monitoring lower-timeframe support zones while tracking the ongoing development of the Wave 1/3 impulse.

From author

The situation surrounding XRP’s price action is particularly intriguing given its recent momentum and the critical resistance level it faces. The interplay between accumulated positions and the psychological resistance at $2.41 will be essential in shaping the immediate future of XRP. The market’s reaction at this juncture could be indicative of broader trends within the cryptocurrency space.

Impact on the crypto market

• XRP’s current resistance level at $2.41 could influence trading strategies for many investors.
• A successful breakout above this level may encourage bullish sentiment across the market.
• Conversely, inability to overcome this resistance could trigger selling pressure and lead to market volatility.
• The dynamics observed in XRP may set a precedent for other cryptocurrencies facing similar resistance levels.
• Overall market sentiment could be swayed by the outcome of XRP’s test at the $2.41 zone, potentially affecting trading volumes and investor confidence.