XRP Posts Strongest Weekly Rally Since October Bull Trap or Launchpad to $3?

  XRP has recorded its biggest weekly price surge since October, sparking renewed debate among traders and long-term investors over whether the move signals a true trend shift or just another short-lived rally. After briefly dipping below the $2 level earlier this month, the token rebounded sharply with an estimated 12% gain within a single week, showing renewed buying interest across the market.

This sudden price movement has pushed XRP back into a critical technical zone where historical breakouts and failures have occurred. While bullish momentum is visible, analysts remain divided about whether this rebound is the beginning of a sustained rally or simply a temporary bounce before another downward move.

Technical Outlook: What the Charts Are Showing

From a technical perspective, XRP is still trading within a symmetrical triangle pattern on the weekly chart. This formation typically indicates market indecision and often precedes a sharp breakout in either direction. The recent bounce suggests that buyers are protecting the lower range of this pattern, but confirmation of a long-term uptrend has not yet occurred.

A major resistance level now sits near $2.32, an area that aligns with several historic rejection zones. If XRP manages to close above this level with strong volume, it could trigger a larger breakout toward the $3 mark. However, failure to break this resistance may invite renewed selling pressure.

Support is currently forming between $1.90 and $2.00. A breakdown below this zone could send XRP back into a deeper correction phase, potentially revisiting levels seen earlier this year.

On-Chain Activity Signals Caution

While price action appears optimistic, on-chain activity tells a more cautious story. Average token dormancy  which measures how long coins stay untouched before moving  has recently spiked. This trend often indicates that long-term holders are transferring or selling their assets, potentially locking in profits rather than accumulating more.

Momentum indicators are also mixed. Although liquidity flows have improved slightly, longer-term trend signals continue to suggest that bearish risk has not fully disappeared. This increases the possibility that the move could end as a bull trap rather than a lasting breakout.

Can XRP Realistically Reach $3?

Reaching $3 is not unrealistic, but it will require more than short-term enthusiasm. Strong buying volume, expanding market participation, and a confirmed trend reversal on higher timeframes are needed to push the asset toward that milestone.

Institutional involvement and new investment products have helped XRP regain visibility, but consistent demand must follow in order for a sustained rally to develop. Until resistance is broken and accepted as new support, the price outlook remains uncertain.

For now, traders are watching the $2.30-$2.35 range closely. A breakout there could open the door to a run toward $3, while a failure may confirm the rally as a trap rather than a launchpad.

FAQs

What caused the recent XRP price surge?

The rally occurred after XRP rebounded strongly from below $2 due to renewed buying pressure and positive market sentiment. However, technical and on-chain signals indicate that traders are still uncertain about long-term direction.

Is XRP currently in a bull market?

Not yet. XRP remains inside a consolidation pattern, and while short-term momentum appears positive, a confirmed breakout has not occurred on higher timeframes.

What is the most important resistance level right now?

The area around $2.32 is the key barrier. A strong close above this level could set the stage for further upside.

What happens if XRP fails to hold support?

If the price drops below the $1.90-$2.00 range, XRP could retrace further and test lower levels before another attempt upward.

Can XRP realistically reach $3 soon?

Yes, but only if it breaks resistance with strong volume and maintains momentum. Without this, the price may remain in consolidation or pull back.