Ripple (XRP) Price Analysis: Bullish Setup Targeting $3.40
Muhammad Faraz 
Ripple (XRP) Price Analysis Bullish Setup Targeting $3.40
Ripple (XRP) has recently tested and held a strong support zone between $2.70 and $2.80, signaling potential accumulation by buyers. The price structure suggests a bullish bias, with our primary upside target set at $3.40. This projection is backed by a clean rebound setup from support, favorable volume dynamics, and a clear technical path towards higher levels.
Current Market Structure and Price Action
The current structure is bullish in the short-to-medium term. After a series of pullbacks from the early October highs, XRP has stabilized above $2.80, a key level that previously acted as resistance and has now flipped into support.
Price action over the last few sessions shows:
- Declining bearish momentum.
- Buyers stepping in aggressively at the green support zone.
- A potential reversal pattern forming at the support base.
If this structure holds, it sets the stage for a breakout rally towards the $3.00 psychological mark and beyond.
Key Support Zone: $2.70 – $2.80
The $2.70–$2.80 range is the critical strong support zone, highlighted in green on the chart. Its significance stems from:
- Historical Significance: This zone acted as a pivotal resistance in previous rallies and is now serving as a strong support.
- Technical Confluence: It aligns with horizontal price structure, previous swing lows, and volume spikes, reinforcing its reliability.
- Market Psychology: Traders view this area as a discount zone, often triggering buying interest and short covering.
As long as XRP remains above this zone, the bullish thesis remains valid.
Technical Targets and Rationale
- Primary Target (PT1): $3.40
Rationale: This level coincides with a previous swing high resistance area and serves as a clean upside objective. It also aligns with measured move projections from the recent range. - Secondary Target (PT2): $3.80 (extended scenario)
Rationale: If XRP breaks $3.40 with volume confirmation, the next major resistance sits near the $3.80 level, a historically significant pivot zone.
Prediction: We expect a bullish breakout from current levels towards $3.40 in the upcoming days, with the potential to extend further if momentum continues.
Risk Management Considerations
A sound strategy requires clear invalidation points:
- Invalidation Level: A daily close below $2.70 would invalidate the bullish thesis, indicating that bears have regained control of the market structure.
- Position Sizing: Risk should be limited to 1–2% of capital per trade, with stop-loss levels placed just below the support zone to protect against false breakouts.
Fundamental Backdrop
While this analysis is primarily technical, it’s worth noting the broader backdrop:
- XRP has continued to benefit from renewed market optimism in the crypto space.
- Regulatory clarity in key jurisdictions has improved sentiment for Ripple.
- Increased trading volumes and network activity are adding tailwinds to the bullish outlook.
These fundamentals support the technical view, strengthening the probability of a bullish breakout.
Conclusion
Ripple (XRP) is at a technical inflection point, trading just above a strong support base at $2.80. The bullish structure, clear target at $3.40, and supportive market context all point towards a potential upside move in the coming days. Traders should watch for a confirmed breakout above nearby resistance levels, while managing risk through disciplined stop-loss placement.
Chart Source: TradingView
Disclaimer:
This analysis is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All forms of trading and investing involve significant risk. Always conduct your own research (DYOR) and consider consulting with a licensed financial advisor.
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