Despite technical headwinds and lingering regulatory uncertainty, bulls are eyeing a return to $2.50 — a level that could mark the start of a long-awaited mega rally.

XRP Price Rebounds After 9% Drop

XRP price is back on investors’ radars after recovering from a sharp 9% plunge earlier this week. Following a sell-off that briefly sent the XRP price to a low of $2.06 on Thursday, bulls pushed the token back to $2.18 by Friday morning. The recovery came just as a concerning technical pattern—the “death cross”—formed on XRP’s hourly chart.

XRP was trading at around $2.17 at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

A death cross, typically seen as a bearish signal, occurs when the short-term moving average crosses below the long-term moving average. In this case, XRP’s 50-period SMA slipped beneath the 200-period SMA, prompting concern among traders. But instead of extending its losses, XRP defied expectations.

XRP has now traded in the green for seven of the past eight hours. According to CoinMarketCap, daily trading volume surged by 73.9% to reach $3.5 billion, suggesting renewed bullish interest in the Ripple market.

XRP Eyes $2.50 as Bulls Regain Confidence

The recent recovery has turned traders’ focus toward a possible breakout above the $2.20–$2.30 resistance zone. If XRP clears this region—supported by its 50-day and 100-day EMAs around $2.26—the path to $2.50 could become increasingly viable. This target marks a psychological milestone for many retail investors and a technical pivot for short-term traders.

XRP has found support at the lower Bollinger Bands near $2.16, suggesting a potential bullish move ahead. Source: Sahrin on TradingView

According to crypto analyst Sahrin, XRP rebounded from the lower Bollinger Bands after Thursday’s correction and could test the higher band near $2.50. Besides, the relative strength index (RSI) on the 4-hour chart has turned neutral, aiming toward the 50 midline, which could further support a near-term uptrend.

Adding to the optimism, the Moving Average Convergence Divergence (MACD) indicator is nearing a bullish crossover. If confirmed, this would validate the recent recovery as more than just a relief bounce.

Historical Pattern Suggests a 2017-Style Breakout

Seasoned XRP holders are experiencing déjà vu. Analysts have noted that the current consolidation phase mirrors XRP’s historic 2017 setup. Back then, Ripple’s token spent over 200 days in a tight range before erupting into a major bull run.

If XRP mirrors its 2017 pattern, its current 190-day consolidation suggests a potential breakout within the next 2–4 weeks. Source: Xoom via X

Now, after 190 days of sideways action between $2.20 and $2.80, XRP appears poised for another decisive move. “This could be the lull before the next big storm,” noted one market analyst, suggesting that a breakout may be only weeks away, provided XRP holds above key support levels.

However, some traders remain cautious. As one observer put it, “If XRP starts shooting up from here, I’d be 30% careful,” reflecting ongoing concerns about a potential liquidity sweep toward $1.90 before a genuine rally can begin.

XRP Lawsuit and Broader Market Sentiment in Focus

The backdrop to this technical recovery remains complex. Ongoing developments in the XRP lawsuit between Ripple and the U.S. Securities and Exchange Commission continue to shape investor sentiment. Any progress in the XRP SEC legal battle could be a major catalyst for Ripple crypto markets.

In parallel, macroeconomic factors are also in play. The U.S. economy added 139,000 jobs in May, slightly above expectations, with the unemployment rate holding steady at 4.2%. Despite this, economists, including Moody’s Mark Zandi, warn that inflation and Trump’s proposed tariffs could weigh on growth. Such factors may influence the Fed’s next interest rate decision, and by extension, crypto market appetite.

Technical Risks Still Loom

Despite renewed optimism, XRP still faces resistance from key technical levels. It is currently trading below the 50-period, 100-period, and 200-period EMAs on higher timeframes, suggesting that the broader trend remains uncertain.

XRP is struggling to break through key resistance at the $2.17–$2.19 Fibonacci zone, with a failure to clear $2.20 potentially triggering a pullback toward $2.14 or $2.10. Source: Amir9 on TradingView

Analysts warn that while the XRP value may continue climbing short-term, sell signals on the charts could reappear if volume dries up or macro pressure resumes. In such a case, XRP might revisit the $2.00–$2.08 zone before finding firmer support.

Outlook: Breakout or Fakeout?

All eyes are now on XRP’s ability to hold its recovery and convert technical signals into sustained momentum. If bulls can clear resistance around $2.26, a move to $2.50 could become reality. And should Ripple XRP news take a bullish turn—especially in the courtroom—the token could be in line for its long-anticipated mega rally.

Until then, XRP remains at a technical crossroads. The next few sessions may decide whether this rebound is the start of something bigger, or just another setup in the ongoing battle between bears and bulls in the ever-volatile Ripple exchange markets.

 

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Filed under: Bitcoin - @ June 8, 2025 3:16 am