XRP is currently in consolidation after a keen 20% pullback from its recent local high of $1.63 set last Saturday. Despite the slowdown, XRP remains a mighty competitor in the market as it remains steady above critical demand levels, demonstrating resilience to broader market volatility. While Bitcoin flirts with the psychological $100,000 mark, XRP’s price structure continues to signal upside potential, drawing the attention of traders and investors alike.

Cryptocurrency analyst and investor Carl Runefelt shared a technical analysis of X, suggesting that XRP may be on the verge of a significant breakout. According to Runefelt, if XRP successfully breaks a key resistance level in its current price range, the asset could retest local highs at $1.60 in the coming days, setting the stage for another rally.

The overall market awakening has added optimism to the cryptocurrency space, and XRP is poised to benefit from the momentum. However, maintaining strength above the current demand zone is crucial for XRP to maintain its bullish trajectory. Investors are closely watching for confirmation of a breakout, as XRP’s ability to reclaim recent highs could signal the start of a broader uptrend in the coming weeks.

It looks like XRP is ready to continue

XRP appears poised for another bullish rally, with technical indicators and market sentiment consistent, suggesting a continuation of the uptrend. As the broader cryptocurrency market shows signs of awakening, it stands out as one of the assets with the potential to set modern yearly highs in the current cycle. Analysts and investors are increasingly confident, with many viewing the $2 mark as the first significant milestone for XRP bulls.

Crypto analyst Carl Runefelt recently shared a detailed technical analysis of Xhighlighting a key development in the XRP price situation. According to Runefelt, XRP is approaching the point of breaking out of a falling wedge formation, which is a historically bullish pattern.

If this breakout occurs, XRP could initially reach a recent local high of $1.60. A break above this supply zone would signal mighty buying momentum, paving the way for XRP to pursue modern cycle highs and potentially break above the $2 resistance level.

However, XRP’s journey to modern highs is not without risks. If the asset fails to break above the $1.60 level, further consolidation below that price could occur, delaying its upward trajectory. Such a scenario would likely see XRP retest key demand zones before attempting another breakout.

As the market collectively moves towards higher valuations, XRP’s performance remains closely tied to its ability to break through critical resistance levels. A successful break above $1.60 would not only confirm the current bullish setup, but also strengthen confidence in XRP’s potential to lead the altcoin rally this cycle.

Technical analysis and key levels

XRP is currently trading at $1.43, showing remarkable resilience after rising 200% from its November 5 lows. While the price is down 20% from its local high of $1.63, XRP’s bullish structure remains intact as the broader cryptocurrency market braces for another potential rally. Analysts and investors are confident that the price can maintain its momentum provided key support levels hold.

The $1.27 mark is emerging as a critical demand zone for XRP, maintaining the near-term bullish structure that has fueled its recent rally. If XRP successfully defends this level, the price is expected to consolidate before another attempt to break above the resistance at $1.60. A break above this key level could open the door to further gains, bringing XRP closer to its next major milestones in this cycle.

However, failure to stay above $1.27 could change market sentiment and lead to deeper corrections. This would challenge XRP’s bullish momentum and potentially test lower support levels, delaying its upward trajectory.

With the market looking set to continue, XRP’s ability to stay above critical demand zones will determine its performance in the coming weeks. Investors are closely monitoring these levels as the asset has a chance to move higher.

Featured image from Dall-E, chart from TradingView