XRP might be on the verge of a potential price breakout targeting the $3 spot based on its short-term technical setup. To this end, the asset’s recent price action, where XRP tested the $2 support, is forming a bullish structure, signaling a possible “buy-the-dip” opportunity, according to an April 5 analysis by ImmortalAXS on TradingView. The analyst noted that XRP recently experienced a liquidity sweep, dipping below previous lows into a known support zone around $2. This move, often referred to as a “Swipe Liq / Adding more,” is a common tactic to trap sellers and collect liquidity before a sharp reversal. True to form, XRP quickly rebounded, suggesting a strong bullish reaction. XRP price analysis chart. Source: TradingView The analyst noted that a developing triple bottom pattern at the $2 support level further strengthens the case. Each dip into this zone has been met with aggressive buying, indicating heavy accumulation by market participants. This repeated defense of the $2 area reinforces its importance as a key support level and sets the foundation for a potential upward move. Now, the next major hurdle for XRP lies at $2.48, a strong resistance zone that has been rejected twice. Therefore, a clean break and hold above this level would mark a shift in market structure, flipping resistance into support, and could signal the start of a bullish continuation, especially if backed by volume and momentum. If XRP convincingly breaks through $2.48, the next targets to watch are $3 and $3.40. These levels are psychological milestones and technically significant zones, aligning with previous price reactions. However, a clear invalidation point remains; a close below $1.79 would break the current structure and suggest sellers are back in control. This level is a critical stop-loss zone for traders looking to manage risk. Investors bullish on XRP price Currently, XRP is trading in line with the broader cryptocurrency market , which remains subdued amid equities reeling from the recent traffic-induced sell-off. Amid these conditions, on-chain data again indicates that most XRP investors are betting on the asset’s price rallying. Specifically, data shared by prominent on-chain crypto analyst Ali Martinez shows that Binance futures trading data reveals that 70.33% of traders with open XRP positions are long, pointing to a strong bullish sentiment surrounding the cryptocurrency. Long/short ratio on Binance. Source: Glassnode/Ali_charts The data, shared on April 6, shows that only 29.67% of accounts are short, resulting in a long/short ratio of 2.37. This shift in sentiment could suggest growing confidence in XRP’s price potential. XRP price analysis By press time, XRP was trading at $2.07, having plunged 3.6% in the last 24 hours. Over the past seven days, the token is down nearly 4%. XRP one-week price chart. Source: Finbold As things stand, XRP is sitting above its 200-day simple moving average ( SMA ) of $1.76 but below the 50-day SMA of $2.38, suggesting long-term strength but short-term weakness. Featured image via Shutterstock The post Here’s XRP’s critical threshold that could unleash a price breakout appeared first on Finbold .
