XRP’s $2.50 Dream: Now or Never? 🚀

by

XRP (XRP) bravely defended its $2 psychological floor this week, like a determined penguin in a snowstorm. After a brief liquidity sweep on Monday, it rebounded nearly 6% on Tuesday, proving that even in the crypto wilderness, hope persists. 🐧✨ While the asset remains in a multimonth downtrend, the $2.28-$2.30 resistance band now stands as the defining pivot for bullish continuation-because nothing says “hope” like a number with two decimal places. 🤔

Key takeaways:

  • A bullish daily close above $2.30 would confirm a break of structure and possibly lead to a move to $2.58. Or it might just be a mirage. 🌅

  • XRP has moved aggressively between liquidity pockets in 2025, increasing the chances of an outsized rally. Or a sudden, unexplained collapse. 🧨

  • Mildly negative funding and weakened open interest indicate bearish conditions, but reclaiming the $2.22-$2.30 range could trigger a squeeze-driven trend reversal. Or a collective nervous breakdown. 🤯

XRP near key price zone as its chart structure tightens

XRP’s bounce to $2.17 occurred after tapping the fair value gap (FVG) just beneath $2, an area created during the Nov. 21 rebound from $1.80. This retest suggested that buyers remain active at discounted pricing zones even within a broader downtrend. Because who needs stability when you can have existential dread? 🧠

Structurally, XRP continued to print lower highs, but the compression below $2.30 resembled a coil forming under a major decision point. Like a spider waiting to pounce on your hopes. 🕷️

A daily close above $2.30 would mark the first trend shift since July, confirming a bullish break of the structure and clearing a clean path toward the next liquidity cluster at $2.58. Or it might just be the universe’s way of saying, “You’re in a simulation.” 🌌

However, XRP’s historical price behavior in 2025 has been characterized by forceful moves from one extreme liquidity pocket to the next. This means that once momentum flips, XRP tends to overshoot intermediate resistance as it hunts liquidity, making $2.58 an extended target. Because why settle for a goal when you can chase a mirage? 🏃‍♂️💨

The relative strength index (RSI) leaned modestly bullish, and a reclaim of the 200-period simple moving average (SMA) would provide strong confirmation. Meanwhile, futures open interest has collapsed from $8.6 billion to $3.8 billion in Q4, suggesting that when a directional expansion arrives, it could unfold rapidly due to thinner positioning. Or it might just be a slow burn. 🔥

Funding dynamics and trader sentiment are split

Analyst Pelin Ay highlighted that XRP funding rates remain predominantly negative, indicating short positioning dominates the futures market. With both price and funding declining together, sentiment is reinforcing the downtrend, raising the probability of a retest of the $2.00-$1.90 zone unless structure shifts. Because nothing says “optimism” like a potential plunge into the abyss. 🤪

If funding drops below -0.01, Ay believed the path toward $1.90 becomes increasingly likely. Still, deepening negative funding often precedes liquidity raids. In that scenario, XRP could briefly consolidate before driving above $2.30. Or it could just disappear like a poorly timed joke. 🧨

Meanwhile, Crypto trader Dom noted signs of an emerging reversal. The trader noted that inverting XRP’s chart revealed a clear three-drive exhaustion pattern over the past six weeks, suggesting trend fatigue. Because even the market needs a nap. 🛌

A higher low has finally printed, and reclaiming the monthly rVWAP (relative volume-weighted average price) at $2.22 would signal that bullish rotation is underway, paving the way toward the $2.50 region. However, the trader warned, 

“Orderbooks are clear, if there was a time, it’s now for this trend to shift. If this setup fails, acceptance under $2 is next and the end of year is ugly.”

Read More

2025-12-04 00:02