- XRP trades below $3.20 with buyers preparing for a possible breakout toward the $3.96 and $5.32 resistance levels soon.
- The market structure shows tightening consolidation between $2.60 and $3.20 signaling a likely breakout pattern in formation.
- Analysts see $3.20 as the critical level that could determine whether XRP rallies or revisits support near $2.60 again.
XRP continues to trade below $3.20 as traders assess the token’s weakening momentum and its tightening consolidation pattern on the multi-day chart. A TradingView analysis shared by market observer Emijoap20 on October 6 shows XRP trading at $2.97, down 2.23% in the latest session. The chart depicts a symmetrical consolidation with price pressure building toward a decisive move that could define XRP’s next direction.
XRP Holds Firm Below Resistance as Trendline Narrows
The analyst’s chart highlights that XRP remains constrained below the descending trendline connecting previous highs. The $3.20 resistance level has remained unbroken for several sessions, confirming the ongoing structure as one of accumulation and compression.
According to the chart, the pattern forms between the $2.60 and $3.20 zones, marking a range where traders anticipate a major breakout. XRP’s inability to close above $3.20 has prevented continuation toward the next resistance near $3.96, while support rests near $2.05.
The price action shows volatility compression, with shorter candle formations reflecting indecision among traders. The moving averages on the three-day timeframe also indicate price congestion, suggesting equilibrium between buyers and sellers. The chart projects that once XRP breaches the descending trendline, momentum could drive a sharp rally toward the $3.96 and $5.32 levels.
Momentum remains cautious as XRP’s 14-day average volume tapers, reflecting restrained participation. The $2.60 support region continues to serve as the base level for short-term positioning. If buyers regain control, the structure could transition into a bullish reversal channel, aligning with previous expansion phases observed in 2024.
Key Resistance Levels Define the Next Market Phase
The technical setup identifies $3.20 as the critical pivot separating consolidation from expansion. A breakout above this price could trigger a retest of $3.96, followed by potential extension toward $5.32, as seen on Fibonacci projections.
The broader formation also displays intermediate resistances at $3.18 and $3.96, marking stepping zones for potential bullish momentum. Conversely, failure to clear $3.20 could result in another retest of the $2.60 and $2.05 supports. The structure suggests a prolonged neutral stance unless volume expansion accompanies any upward break.
Support levels extending from $1.75 to $1.50 remain historical zones of buyer interest. These levels previously acted as accumulation areas during earlier 2024 corrections, providing significant liquidity. Any move below these zones could negate the bullish case in the medium term.
The narrowing wedge formation in late 2025 reflects XRP’s contraction phase before volatility resurgence. Analysts generally interpret such setups as precursors to directional moves once the compression breaks. XRP’s recent rejection candles near $3.07 and $2.97 confirm the tightening behavior and lower trading enthusiasm as traders await confirmation.
Can XRP Break Above $3.20 Before Momentum Weakens Further?
The pivotal question now is whether XRP can clear $3.20 before declining momentum limits its rebound potential.
The chart’s trajectory projects a breakout arrow toward $3.96, contingent on volume reinforcement and momentum alignment. However, failure to sustain above $3.00 may lead to extended consolidation. Technical traders are closely observing the descending trendline, as a clear candle close above it could mark the start of a mid-term rally.
XRP’s present behavior mirrors earlier consolidation cycles that preceded significant surges, though the timing remains uncertain. The token’s inability to close decisively above $3.20 has kept bullish traders cautious. Yet, the structure’s tightening slope suggests a breakout is approaching as volatility contracts further.
At press time, XRP trades at $2.97 on Binance, with immediate support at $2.60 and overhead resistance near $3.20. The 3.2 barrier now serves as the defining metric for short-term sentiment, determining whether XRP will sustain its recovery or revisit lower zones.
