XRP Nears Breakout as Price Tests Key Resistance at $2.40

XRP is showing strong bullish signals as it approaches the $2.40 resistance level, trading at approximately $2.37 after a 2.12% daily gain. The asset is testing the upper boundary of a descending channel that has defined its trend since January 2025. This setup, combined with a wedge formation of lower highs and lows, points to an imminent breakout or breakdown.

What’s encouraging for bulls is XRP’s position above all three major exponential moving averages—50, 100, and 200 EMA—all converging near $2.20. This confluence acts as a robust support zone. The RSI stands neutral at 55, indicating room for further upward momentum without being overbought.

Despite low trading volume, XRP's historical behavior suggests it can move sharply with shifts in sentiment. A clean break above $2.40 could trigger a rapid rally toward the $2.80–$3.00 range. Recent higher lows and a bounce from the wedge’s April bottom add weight to bullish momentum, signaling that buyers are becoming more aggressive.

If momentum builds and volume surges past $2.40, it would likely confirm a trend reversal and ignite increased volatility. However, failure to hold above the 200 EMA support near $2.20 could lead to a drop toward $1.98.

Traders are watching closely as XRP consolidates near a key breakout point, with signs pointing toward a decisive move soon. Whether it breaks higher or faces a pullback will depend largely on volume and sentiment shifts in the coming days.