XRP’s price trajectory has had ups and downs in the past two weeks. Particularly, the large part of the past seven days was characterized by a notable decline from $2.8 to $2.5 before rebounding at this level.
Interestingly, this fall towards $2.5 was highlighted by a crypto analyst on the TradingView platform, who also noted a breakout potential. Crypto analyst TehThomas previously identified the $2.5 level as a key Fair Value Gap (FVG) that could act as strong support and recent price movements suggest that buyers are now stepping in after hitting this level.
XRP Tests Key Fair Value Gap At $2.50
TehThomas’ analysis highlighted $2.50 as a significant liquidity zone where XRP could establish support before continuing its uptrend. This level has acted as an imbalance in price action during this cycle and has often caused a reaction as traders step in to fill the gap. At the time of the analysis, XRP was trading at $2.64, but the analyst noted that the cryptocurrency could keep falling until it reaches $2.5 and rebounds upwards.
Over the past two days, XRP has moved in line with this projection. The cryptocurrency retraced from $2.64, dipping to as low as $2.47 before showing a swift recovery. The rapid bounce from this zone indicates that buy orders were concentrated at this level, and bulls who anticipated a reaction here also stepped in.
Now that the decline and rebound have played out as expected, the focus is now on how XRP will behave in the next few days. Having tested and respected this $2.5 support zone, the next question is whether the bulls can build on this momentum and push upward.
Demand Zone To Send The Altcoin Soaring
With the Fair Value Gap showing signs of acting as strong support, crypto analyst TehThomas believes the next critical step for XRP is breaking above a descending resistance trendline. The breakout point for this descending resistance trendline is around $2.65, and the path between $2.5 and $2.6 is the demand zone for opening long positions. However, there is also the possibility of a retest of the descending resistance trendline after a breakout. If the XRP price can successfully retest and hold above the trendline, it will provide confirmation of the bullish momentum for a further upside move.
Should this scenario play out, XRP’s next target sits at $3.00, which is another key Fair Value Gap. TehThomas notes that reclaiming this level could trigger an extended rally, with further upside potential beyond $3 depending on market conditions.
At the time of writing, XRP is trading at $2.55.