XRP Shows Signs of a Major Breakout

After a prolonged period of stagnation, the XRP token is exhibiting significant price momentum. A surge in trading volume is accompanying its challenge of key technical resistance levels, sending signals that have captured the attention of market analysts. The critical question now is whether this marks the beginning of a sustained recovery or merely a bull trap for overly optimistic investors.

Beyond the price chart, the underlying XRP Ledger (XRPL) is demonstrating robust fundamental health. Network activity has surged to a multi-year high, driven by over 40,000 account operations. Market experts attribute this spike to increased usage of automated market makers (AMMs) and growing developer activity, the latter being fueled by a clearer regulatory environment for the asset.

A Key Technical Threshold is Breached

The sudden dynamism is primarily attributed to XRP’s breakout above the psychologically and technically significant $2.10 level. Observers interpret this move as the conclusion of an extended compression phase. Notably, the price advance is not occurring in a vacuum; it is supported by substantial trading volume that, at times, has more than doubled the average.

Should investors sell immediately? Or is it worth buying XRP?

Currently trading around $2.17, the token is attempting to stabilize within this new zone. Technical analysts point to the formation of an ascending triangle pattern, a configuration that often precedes further gains. Furthermore, the Relative Strength Index (RSI) reading of 28.8 indicates a deeply oversold condition, a state that has historically preceded larger upward movements.

Market Absorbs Scheduled Token Release

This price action coincides with the routine release of XRP from Ripple’s escrow accounts. As scheduled, the company unlocked a total of one billion tokens in December, distributed in two tranches of 500 million each.

This procedure is part of Ripple’s standard operational strategy to provide market liquidity and manage supply in a disciplined manner. The market’s ability to absorb this potential new supply without triggering panic selling is viewed by many participants as an additional sign of underlying strength. The immediate challenge for bullish traders is to prove they can sustain a defensive position above the $2.10 support level.