XRP is making headlines with its price action. While Bitcoin and Ethereum are bouncing off crucial Fibonacci levels, XRP has managed to break above a key resistance zone, signaling potential short-term bullish movement. However, despite this recent positive shift, the market remains volatile, and predicting XRP’s trajectory for the next few days requires considering several technical factors.

XRP’s Recent Price Movements

XRP has recently demonstrated resilience after bouncing off significant support levels between $1.95 and $2.25. For a while, the price was struggling to break through the resistance zone in the $2.25 to $2.30 range. But following a positive shift, XRP closed above $2.30 on an 8-hour candle. This confirmed a breakout above the short-term resistance, suggesting that XRP could see further upward movement in the near term.

While this price movement is encouraging, traders should note that XRP continues to face bearish pressure on the 3-day chart. The price chart reveals a significant bearish divergence, suggesting that sustained bullish momentum may not be in the cards for the foreseeable future. Analyst Josh from Crypto World points out that the bearish divergence on larger timeframes signals that a major upward movement is unlikely. However, this doesn’t entirely rule out the possibility of short-term gains, which remain plausible given the recent price breakout.

Key Resistance Levels for XRP

As XRP continues its price movement, several resistance levels will play a crucial role in determining its near-term direction. The next major resistance zone is expected to be between $2.65 and $2.80. If XRP successfully breaks through these levels, the $3 mark is likely to become the next key target. In the short term, traders should also watch for potential resistance around the $2.50 level, as well as between $2.38 and $2.40, where previous support zones could now act as resistance.

While the market remains uncertain, the breakout above $2.30 has already shifted the sentiment in favor of a potential rally. However, XRP will need to push through these resistance zones before gaining more traction and extending its upward movement.

The Impact of Bitcoin on XRP’s Price

Bitcoin’s price movements often influence altcoins like XRP. Therefore, keeping an eye on Bitcoin’s price action is crucial for predicting XRP’s short-term price behavior. If Bitcoin experiences a brief bullish relief rally, XRP, along with other altcoins, is likely to follow suit. This correlation between Bitcoin and altcoins could provide the boost XRP needs to push through key resistance levels.

However, if Bitcoin faces further declines, XRP and other altcoins may also experience downward pressure. Given the volatility of both Bitcoin and the cryptocurrency market as a whole, XRP’s price is likely to remain influenced by Bitcoin’s performance in the coming days.

Conclusion: Short-Term Bullish Momentum or Bearish Resistance?

In conclusion, XRP’s recent breakout above the $2.30 resistance level signals potential short-term bullish momentum. However, with the larger market trend still under pressure and the presence of bearish divergence on the 3-day chart, XRP may face challenges in sustaining long-term upward movement. Traders should carefully monitor key resistance levels around $2.50, $2.65, and $2.80, as well as Bitcoin’s price action, to gauge whether XRP can continue to rally or if the bearish trend will prevail.

While the market remains uncertain, XRP’s recent price action suggests that there could be short-term gains ahead, but caution is advised as resistance levels loom large.