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XRP News Today: XRP's Crossroads: $2 Correction or $20 Breakout?

XRP News Today: XRP's Crossroads: $2 Correction or $20 Breakout?

ainvest2025/08/29 18:48
By:Coin World

- XRP forms a symmetrical triangle pattern, with $3.3 resistance and $2.8–$2.9 support critical for near-term direction. - On-chain data suggests large holders may be distributing positions, while legal clarity post-SEC case boosts long-term appeal. - Analysts project $20 as a long-term target, but short-term volatility risks include $2.0 support breakdown and distribution pressures. - Institutional adoption and potential ETF approvals could drive a $4.40–$6 retest, though stablecoins remain preferred for

XRP, the third-largest cryptocurrency by market capitalization, faces critical junctures as it navigates a consolidation phase marked by technical and on-chain signals that could influence its near-term trajectory. The asset is currently forming a symmetrical triangle pattern on the daily chart, with key resistance and support levels determining whether it will break out to new highs or experience a deeper correction. Analysts and traders are closely watching the $3.3 resistance level as a pivotal indicator of bullish continuation, while the $2.8–$2.9 support zone is seen as crucial for avoiding a potential decline toward the $2 range [1].

On-chain data and chart patterns suggest XRP is in a distribution phase, where large holders may be offloading their positions before a potential upward move. The recent price decline, which saw XRP drop 22% to $2.72 from a multi-year high of $3.66, has been interpreted by some analysts as a sign of market equilibrium. The price has since rebounded to around $3, but the consolidation remains fragile. A daily close above $3.3 would validate a bullish breakout and potentially target the $3.5 swing high, with further upside to the $3.7 area if the trend continues [2].

Conversely, a failure to defend the $2.8 support could trigger a sell-off into the $2.0 zone, exposing a significant portion of accumulated supply at that level. The 4-hour chart reflects similar patterns, with price fluctuating within a tightening triangle structure. Short-term resistance at $3.2 has proven resilient, with repeated rejection wicks indicating strong selling pressure at that level. Traders are advised to monitor the 4-hour chart for a clean breakout above $3.2 as a confirmation of bullish momentum or a decisive move below $2.7 to signal deeper correction [1].

Macro-level analysis from analyst XForceGlobal remains bullish, suggesting that XRP’s long-term cycle target is $20. According to this view, the recent pullback is part of a larger distribution phase, akin to previous cycles where consolidation precedes a major breakout. The analyst outlined two potential scenarios: one where XRP follows a typical 50% retracement pattern before resuming its uptrend, and another where a longer flat period completes between Wave 1 and 2 before a massive Wave 3 move higher [2]. The symmetrical triangle breakout, with a measured target at $4, further supports the idea of an impending bullish move.

However, short-term traders are advised to be cautious as recent price action indicates distribution rather than accumulation. High-volume selloffs and bearish patterns in momentum indicators such as RSI and MACD suggest increased risk for active traders. The recent sell-off coincided with Bitcoin’s pullback from recent highs, which reduced liquidity and intensified altcoin selling. On-chain data also shows that intraday volume spiked near $273M, signaling a typical distribution day where sellers outnumber buyers at the top end [3].

Despite the short-term volatility, XRP's long-term fundamentals remain intact. The resolution of the Ripple-SEC legal case in August removed a major structural risk, improving its appeal as a long-term investment. Institutional adoption and regulatory clarity are seen as positive catalysts, with some analysts projecting a potential retest of the $4.40 to $6 range in the near future. For longer-term investors, a dollar-cost averaging strategy with a stop-loss below $2.70 is advised to mitigate downside risk [3].

XRP’s price movements are also influencing its adoption in financial applications, particularly in payroll systems used by fintech startups. While XRP's volatility makes it less ideal for payroll integration, recent developments such as favorable legal outcomes and potential ETF approvals are reducing uncertainty and increasing its appeal. However, many companies are opting for stablecoins like USDT , USDC , and DAI, which offer consistent value and reduce exposure to the volatility associated with XRP and other cryptocurrencies [4].

As XRP continues to trade within its key support and resistance range, market participants remain divided on whether it will break out to new highs or experience a correction. The coming weeks will be crucial in determining the direction of the price, with technical levels and on-chain indicators providing key insights for traders and investors.

Source:

XRP News Today: XRP's Crossroads: $2 Correction or $20 Breakout? image 0
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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