XRP Eyes 56% Breakout as Price Holds Above Key Support

3 mins mins

Key Insights :

XRP defends $2.80 support, with analysts projecting a 56% rally toward $4.20 on breakout.
On-chain data shows 2.14 billion XRP transacted near $2.80, strengthening its role as crucial support.
RSI trends near oversold and OBV declines, signaling weak momentum but potential base formation.

*XRP Eyes 56% Breakout as Price Holds Above Key Support*

XRP was trading near $2.86, consolidating after repeated tests of support levels. The current price action forms a base around the $2.85 range, which has acted as a floor over the past several sessions.

According to Kamil, a crypto analyst, XRP is “consolidating within a key range around $2.85 after repeated tests of support.” He added that the price structure leaves open the possibility of a 56% upside move if momentum sustains once the descending trendline is broken.

Key Support Zones Hold the Setup

The support area between $2.50 and $2.48 remains the foundation of the bullish scenario. Holding above this level ensures the pattern stays intact, while a breakdown could weaken the setup. A descending trendline continues to limit upside, but a breakout above it would be the technical trigger for renewed strength.

Based on the measured move, the chart projects XRP toward $4.20, provided buyers can push price past the overhead resistance. The consolidation structure suggests traders are closely watching this range for a potential breakout.

On-Chain Data Confirms $2.80 as Crucial Level

Supporting the chart analysis, on-chain data from the UTXO Realized Price Distribution (URPD) shows that $2.80 is the most important support. Ali, another market analyst, explained that “$2.80 is the most important support level for $XRP!”

Data shows more than 2.14 billion XRP, or around 3.32% of the supply, was last transacted near this price. This concentration of realized volume strengthens $2.80 as a heavy support zone, since many holders have an established position at this level.

$2.80 is the most important support level for $XRP! pic.twitter.com/6sCz11GR91
— Ali (@ali_charts) September 23, 2025

Indicators Show Weak Momentum

Technical indicators on the daily chart reflect weaker buying activity. The Relative Strength Index (RSI 14) is at 42.28, trending closer to oversold levels, which signals waning momentum. Although not fully oversold, the downward slope shows sellers remain active.

The On-Balance Volume (OBV) indicator reads 49.38B, continuing its decline since mid-August. This decline points to reduced accumulation, aligning with XRP’s struggle to break above the $3.00 level.

XRP’s short-term trend depends heavily on whether $2.80 continues to hold. Current conditions suggest that this level could act as the launch point for a breakout or, if lost, open the door to further downside.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.