XRP extended its gains above the $2.50 mark on Thursday, breaking key resistance as volume surged 31% above weekly averages. The move came amid broader risk sentiment in crypto markets, with bitcoin rising and traders rotating toward large-cap tokens that display technically defined setups.
News background
- The token’s latest advance came after weeks of consolidation between $2.35 and $2.50, with technical strategists following a reverse head and shoulders basis through mid-October.
- Thursday’s decisive move through the $2.50 neckline confirmed that pattern, opening a possible continuation phase towards the $2.65 to $2.80 range if the buying persists.
- Market positioning changed as macroeconomic sentiment improved. Weaker US inflation data and falling Treasury yields triggered risk flows into major altcoins. XRP outperformed the CoinDesk 5 index by about five percentage points, indicating asset-specific accumulation rather than sector momentum.
Price Action Summary
- XRP rose from $2.50 to $2.57 throughout the session, with intraday volume peaking at 142 million, 31% above its seven-day average.
- The breakout was defined by three sequential higher lows at $2.44, $2.48, and $2.51, confirming a controlled accumulation through the $2.50 zone.
- While brief profit-taking emerged near $2.58, XRP remained above breakout support, suggesting institutions added exposure on retests.
- High spot volume combined with weak derivatives leverage confirmed genuine buying interest rather than short squeeze dynamics.
Technical analysis
- The completed inverse head and shoulders formation now defines XRP’s short-term technical bias. Momentum indicators including RSI and MACD rose on the daily chart, while expanding volume validates the strength of the move.
- Immediate resistance lies at $2.60, followed by secondary targets near $2.80. Failure to hold the $2.50 level at the close would neutralize the bullish structure, which could invite a rotation towards the $2.40-2.42 support.
What traders should know
Traders are monitoring whether $2.50 holds as a new base, a level now considered the pivot for confirmation of the short-term trend. Exchange balance data shows that XRP reserves have decreased by approximately 3.3% since the beginning of October, a historically bullish signal linked to whale accumulation phases.
Open interest has stabilized and funding rates remain neutral, so the move is largely due to spot. Sustained volume above 130 million over the weekend could validate the continuation towards $2.70-$2.80, while fading participation may trap prices back within the $2.40-$2.55 range.
