Ripple’s XRP Tests Historic Support That Sparked Its 2018 Surge

Ripple’s XRP has drawn attention once again following a technical setup that resembles its 2017 market pattern. Now, traders are watching its behavior around a key support level that once triggered a major rally.

XRP Returns to 21-Month EMA Support

In 2017, XRP broke out from a multi-year triangle, held above the 21-month EMA, and then climbed sharply in early 2018. Analyst JD pointed out that the token is now showing a near-identical pattern. It has broken out from a large triangle and is currently bouncing off the same 21-month EMA.

The setup has raised expectations that XRP might follow the same path as before. Currently, the price movement suggests that the asset could be setting up for another strong move if the pattern holds. JD explained,

Strong Rally Fades at Resistance

XRP recently jumped from below $1.90 to $2.41 within a week, driven by increased ETF inflows and reduced token supply on exchanges. However, the rally lost momentum, and the asset has since retraced to $2.07 at press time. The 24-hour volume stands at over $2.88 billion, with the price slipping slightly in the last 24 hours and almost 3% over the past week.

Analyst ChartNerd noted, “$XRP has a job on its hands,” referring to strong resistance levels ahead. Both the Weekly 20 EMA and the mid-line of the Gaussian channel are sitting near $2.26. These indicators are now acting as resistance.

Meanwhile, XRP is also reacting to former triangle support, now testing it as resistance. Another analyst, Javon Marks, shared that XRP’s current structure matches its 2017 breakout. Back then, the token exceeded its measured move target. “XRP can be in route to its measured move target above $16.5,” he said, which would represent a 663% move from current levels.

He also suggested that a similar breakout could push the token even higher than those projections. This view is based on structure alone, without considering outside market forces. The path ahead depends on how XRP handles resistance and whether volume continues to support upward pressure.

Market Conditions Remain Mixed

CryptoWZRD noted that XRP’s daily candle closed indecisively. “A move above the $2.1000 resistance is a bullish territory,” the analyst said, adding that Bitcoin’s next move may guide the market direction.

There are also signs of caution. Ali Martinez pointed out a possible gravestone doji forming, which can signal weakness. At the same time, whale activity has slowed. A report from CryptoPotato said large XRP transfers jumped during the price surge but have since dropped off. This may suggest less participation from major holders.

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