XRP has entered a consolidation phase after reaching a multi-year high of $2.90 in the first week of December. The cryptocurrency’s price action has left investors uncertain about its next move, fueling speculation on whether XRP will breach the critical $3 mark or if the top of the cycle has already been established. This hesitant environment reflects a broader trend of caution among market participants as the future of XRP remains unclear.

Ali Martinez, a prominent cryptocurrency analyst, recently shared insights suggesting that XRP is trading within a bull flag pattern, which is a classic continuation signal in technical analysis. According to Martinez, the key to unlocking the next XRP rally is breaking through the resistance level at $2.60. A break above this threshold could set the stage for XRP to break above $3 and potentially explore even higher price levels.

As the market closely watches XRP’s movements, the $2.60 level has become a critical battleground for both bulls and bears. As momentum increases and the broader cryptocurrency market demonstrates strength, XRP’s ability to break out of its consolidation phase could be the difference between it making fresh highs or facing a potential reversal. For now, all eyes are on the next vital move.

Preparing for the next rally?

XRP has been in a volatile consolidation phase since December 3, seeing a 34% retracement followed by a 36% rebound, although it remains below the local high of $2.90. This price action reflects a tug of war between bullish momentum and market volatility as investors speculate on XRP’s next move. Despite these changes, the structure of XRP is poised for further significant growth.

The best analyst and investor Ali Martinez recently provided insight into the price of XRPsharing X’s technical analysis highlighting the current bull flag pattern. According to Martinez, this setup indicates a potential continuation of the uptrend once XRP breaks the critical resistance level at $2.60. If this breakout occurs, Martinez predicts that XRP could “take off into the race” by setting an ambitious price level of $4.

Resistance at $2.60 is key to breaking XRP out of its current range, and a successful move above this level would likely trigger upside momentum. Moreover, reclaiming the local high at $2.90 would signal the beginning of price discovery, and XRP would be able to cross its next psychological milestone at $3.31.

As XRP consolidates, its future will depend on overcoming these resistance levels. The current bull flag pattern and broader market sentiment suggest potential for a breakout, but the timing and strength of this move remain uncertain. Investors continue to pay close attention to confirmation signals.

XRP Price Action: Levels to Watch

XRP is trading at $2.57, approaching the critical resistance level at $2.64. This price point is crucial to XRP’s near-term trajectory as a clearing would open the door to testing a local high at $2.90. A break of these levels in the coming days could trigger a massive rally, potentially pushing XRP into uncharted territory above its all-time high (ATH).

The level of $2.64 is a key barrier that must be crossed to confirm increasing dynamics. If XRP successfully clears this hurdle, it will likely attract fresh buying interest, accelerating the upward move. A move beyond $2.90 would further confirm the strength of the trend and set the stage for significant gains.

However, failure to break above $2.64 could expose XRP to downward pressure. Maintaining support above $2.33 would be crucial in this scenario to avoid a deeper correction. A loss of this level may signal a change in sentiment, which could lead to a more pronounced retracement.

Featured image from Dall-E, chart from TradingView