By Chris Hollingworth 
XRP (XRP) has experienced a significant drop of nearly 40% to reach around $2.19, only two months after reaching a multi-year high of $3.40. This decline is part of a broader market sell-off influenced by President Donald Trump’s trade war, despite positive developments such as the SEC dropping its case against Ripple.
Despite the recent pullback, XRP is still showing a substantial gain of 350% from its low in November 2024, indicating a period of consolidation following a strong rally. The current sideways movement has sparked debates within the market on whether this marks the end of the bull run or presents a potential buying opportunity.
XRP has been trading in a range between $1.77 (support) and $3.21 (resistance) since January, with repeated rejections near the upper limit and diminishing bullish momentum. Analysts, including CrediBULL Crypto, suggest that XRP’s recent attempt to bounce was thwarted below $2.20, reinforcing bearish sentiment. It is now anticipated that the price might revisit the support level around $1.77, presenting a potential entry point for long positions.
The chart analysis indicates a strong support area between $1.50 and $1.77, where bullish investors could intervene. While a short-term market rebound, led by Bitcoin (BTC), might lead to a temporary recovery, a definitive bullish trend reversal would only be confirmed with a clean breakout above $3.21. Until such a breakout occurs, XRP is expected to remain in a sideways pattern, with a focus on monitoring reactions at the $1.77 support level before considering long positions.
Looking ahead, some analysts see a potential bullish scenario for XRP. Stellar Babe suggests that a bull flag pattern might be forming within the consolidation range of $1.77 to $3.21. A bull flag typically signifies a consolidation phase after a strong uptrend and could lead to a significant price surge if the upper boundary at $3.21 is breached, potentially targeting around $12, representing a 450% increase from current levels.
In a broader perspective, InvestingScoope’s analysis reveals that XRP is currently consolidating within a long-term bullish structure, characterized by a five-year ascending channel. The current price action resembles a previous rally from March 2020 to April 2021, supported by momentum indicators. As long as XRP maintains above the 50-week moving average (1W MA50), the overall bullish cycle is expected to continue, potentially setting the stage for a move towards $6.50 in the coming months.
It’s important to note that this article does not offer investment advice or recommendations. All investment decisions involve risks, and individuals should conduct thorough research before making any financial decisions.
