XRP extended gains above the $2.50 mark on Thursday, breaking key resistance as volume surged 31% above weekly averages. The move came amid a broader risk-on sentiment across crypto markets, with bitcoin climbing and traders rotating to high-cap tokens showing technically defined setups.
News background
- The token’s recent advance followed weeks of consolidation between $2.35 and $2.50, with technical strategists tracking an inverted head-and-shoulders base through mid-October.
- Thursday’s decisive move through the neckline at $2.50 confirmed this pattern, opening a potential continuation phase towards the $2.65-$2.80 range if the buying continues.
- Market positioning changed as macro sentiment improved. Softer US inflation data and falling Treasury yields triggered risk flows into major altcoins. XRP outperformed the CoinDesk 5 Index by around five percentage points, signaling asset-specific accumulation rather than sector momentum.
Summary of price action
- XRP rose from $2.50 to $2.57 across the session, with intraday volume peaking at 142 million – 31% above its seven-day average.
- The breakout was defined by three sequential higher lows of $2.44, $2.48 and $2.51, confirming controlled accumulation through the $2.50 zone.
- While a brief profit-taking appeared near $2.58, XRP held above breakout support, suggesting institutions added exposure on retest.
- Elevated spot volume combined with muted 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, both turned higher on the daily chart, while volume expansion validates the strength of the move.
- Immediate resistance lies at $2.60, followed by secondary targets near $2.80. Failure to hold $2.50 on a closing basis would neutralize the bullish structure, potentially inviting rotation back toward $2.40-$2.42 support.
What traders should know
Traders are watching to see if $2.50 holds as the new base – a level now considered the pivot point for short-term trend confirmation. Exchange balance data shows that XRP reserves have decreased by approx. 3.3% since early October, a historically bullish signal linked to whale accumulation phases.
Open interest has stabilized and funding rates remain neutral, leaving the move largely spot-driven. Sustained volume above 130 million through the weekend could validate a continuation towards $2.70-$2.80, while waning participation could trap prices back into the $2.40-$2.55 range.
