XRP Nears Critical $2.40 Breakout Zone as Technicals Signal Expansion

According to analysis from Egrag Crypto, XRP’s price action on the 3-day chart remains constructive despite recent consolidation. The cryptocurrency is compressing inside a descending channel as it approaches the crucial $2.30–$2.40 zone, a level that carries significant technical weight as it aligns with the channel’s upper boundary and a former breakout level. This compression, often a precursor to volatile expansion, indicates the market is building energy for its next major move.

Key technical elements underscore this underlying strength. The 50-period Exponential Moving Average (EMA) has begun to flatten, signaling a gradual easing of selling pressure. Concurrently, the 200-period EMA continues its upward trajectory, reinforcing the macro bullish trend. Critically, XRP is holding above the EMA cluster, confirming that the broader market structure has not broken down. This technical setup suggests that the consolidation is a period of accumulation rather than distribution.

The implications of this compression are clear. A decisive 3-day close above the $2.40 resistance level would likely confirm a breakout from the descending channel. This technical event would open the door for a continuation move, with an initial target in the $2.70 region and a higher upside objective at $3.13. Conversely, rejection at this resistance would likely keep XRP range-bound. However, analysts emphasize that as long as price holds above the $2.00 support area, the overall bullish structure remains intact, framing any pullback as a consolidation within a larger uptrend rather than a breakdown.

Adding another layer to the technical narrative, CrediBULL Crypto notes that XRP has completed a triple-tap move, successfully reaching the upper boundary of its trading range. With liquidity at these range highs now absorbed, the market stands at a clear crossroads, presenting two distinct potential paths for near-term price action.

The first scenario interprets the recent move higher as merely a relief bounce—a liquidity sweep at the range highs before the resumption of a local downtrend within the higher-timeframe uptrend. If this bearish interpretation plays out, price could move lower again, with a potential drop below the $1.77 level. This would represent a deeper retracement within the ongoing bullish macro structure.

The alternative, and according to CrediBULL Crypto the more likely scenario, frames the triple-tap pattern as the formation of a solid base of structural demand. Under this bullish view, any pullbacks from current levels are expected to be met with significant buying interest. In this case, the $1.77 lows would act as a firm support zone rather than a level to be broken. Weighing the broader market context, including Bitcoin’s position, the analyst leans toward this second outcome, favoring a bias that looks for long opportunities with the expectation that XRP will continue to expand higher and eventually target untapped price levels above the current range.

The convergence of analyses from Egrag Crypto and CrediBULL Crypto creates a focused map of critical levels for XRP traders and investors. The immediate battleground is unequivocally the $2.30–$2.40 zone. A sustained breakout above $2.40, particularly on a 3-day closing basis, is the primary bullish trigger, with subsequent targets at $2.70 and $3.13.

On the support side, the $2.00 level serves as the major structural guardrail for the bullish thesis. A breach below this could signal a more prolonged consolidation phase. Deeper still, the $1.77 level emerges as a critical inflection point, representing either a formidable demand zone in the bullish scenario or a breakdown level in the bearish liquidity-sweep narrative. The market’s behavior around these levels will provide the clearest signal for XRP’s next directional phase, determining whether the current compression resolves into a powerful expansion upward or a period of continued range-bound action.