XRP Shows “Coiled Spring” Setup As Network Liquidity Hits Record Levels
XRP has regained momentum after reclaiming the $2.20 level and extending its move toward the $2.41 mark, marking one of its strongest advances in recent months. The recovery comes after a prolonged period of selling pressure and uncertainty, and it has reignited bullish expectations among a segment of investors who now believe XRP could challenge or even surpass its all-time high later this year. While skepticism remains across the broader market, price action suggests that XRP is no longer purely defensive. The breakout above the short-term moving average (blue line) is a constructive development. This level had previously acted as dynamic resistance throughout November and December, consistently rejecting upside attempts. Reclaiming it signals improving momentum and a potential shift in market structure. However, XRP is now approaching a dense resistance cluster between $2.45 and $2.65, where both the 100-day and 200-day moving averages converge. Historically, this zone has attracted strong selling pressure.Related Reading
While the recent rally shows increased participation compared to late December, it remains well below the levels seen during prior impulsive advances. This suggests that although buyers are regaining control, conviction is still developing. A period of consolidation above $2.20 would help solidify this move.
If XRP can hold above the $2.30–$2.35 area, the probability of a broader recovery toward $2.70 increases. Failure to do so would likely result in a pullback, keeping XRP range-bound and vulnerable to renewed selling pressure.
Featured image from ChatGPT, chart from TradingView.com
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