XRP Faces Critical Support Levels as Analysts Debate Its Future

Despite a brief rally, XRP’s price action is facing growing concerns from analysts. Dom, a prominent XRP market analyst, pointed out that the altcoin failed to maintain the volume-weighted average price (VWAP) at $2.70, which had previously marked its all-time high. According to Dom, in order for the rally to have any lasting power, XRP must hold a firm position above the $2.50 range. Failure to do so could signal further weakness and potential downward pressure on the asset’s price.

$2.50 Support: A Crucial Level for XRP

Dom emphasized the importance of the $2.50 support level for XRP, warning that if the altcoin drops below this range, it could trigger further bearish momentum. Holding above $2.50 is essential for maintaining any hope of a sustained rally and could set the stage for more upward movement in the future. If XRP fails to find solid footing at this level, it could indicate a deeper pullback for the cryptocurrency.

Bullish Outlook: Will Trump’s Endorsement Push XRP Higher?

On the other hand, crypto investor Dami DeFi believes that XRP’s chart on higher time frames (HTF) shows a consolidation pattern below key resistance and an ascending trendline. According to Dami, the rally could gain momentum if XRP breaks through this critical level. The investor further pointed to Trump’s endorsement of XRP for the U.S. crypto reserve, suggesting that if the altcoin can successfully flip this level, it could set the stage for a new phase of price discovery.

“With Trump backing $XRP for the U.S. reserve, once it flips this level, it’s game on for price discovery,” said Dami, highlighting the potential for a strong push if the price moves beyond key resistance.

Bearish Perspective: Inverse Head and Shoulders Formation

However, not all analysts share the optimistic view. Matt C, a cybersecurity engineer and Bitcoin proponent, dismissed the bullish outlook for XRP. He identified the formation of an inverse head and shoulders pattern on XRP’s chart, which could signal a reversal. Additionally, Matt pointed out that the relative strength index (RSI) on the 1-day chart is forming lower highs, which suggests weakening bullish momentum.

From Matt’s perspective, the recent surge in XRP’s price is nothing more than "exit liquidity" for retail investors. He believes that the altcoin’s price rise is a short-term phenomenon designed to allow large holders to offload their positions before a possible decline.

Conclusion: Will XRP Hold Above $2.50?

XRP's future remains uncertain, with analysts divided on its prospects. Dom's warning that the altcoin must hold above $2.50 is critical, as failure to do so could lead to a deeper correction. Meanwhile, Dami DeFi remains optimistic, arguing that the potential for a breakout above key resistance could lead to new highs, especially with the backing of former President Trump’s strategic crypto reserve announcement. On the flip side, Matt C’s bearish outlook suggests that the current rally may be a trap for retail investors, with an impending price reversal on the horizon.

With so much at stake, the coming days could be crucial for XRP. Investors will need to closely monitor the $2.50 support level, as a sustained move above it could pave the way for further gains, while a drop below may indicate a shift in market sentiment.