XRP Breakout Explained as Analyst Identifies New XRP Profit-Taking Zone

Market analyst Arthur identifies a new XRP profit-taking zone amid the recent 10% price surge and subsequent pullback.

XRP captured market attention over the weekend with a surprising rally that pushed its price up nearly 10% on Saturday, Jan. 11. This surge marked a retest of the $2.60 resistance level, a price XRP hadn’t approached in a month. 

However, the upward momentum faced a pullback shortly after, leaving market participants wondering what could come next. Arthur, a seasoned market analyst, shared his perspective on the breakout, the pullback, and potential future movements for XRP.

XRP Breaks Above Symmetrical Triangle 

Arthur described the weekend rally as a bullish breakout from a symmetrical triangle pattern on the daily chart. Such patterns typically lead to major price moves, and XRP’s breakout aligns with increasing momentum and volume. 

XRP holders, here is what you need to know about yesterday’s breakout THREAD👇🧵 pic.twitter.com/8Wijkmi3yf

— Arthur (@XrpArthur) January 12, 2025

Despite the promising setup, the market analyst noted that confirmation of the uptrend is important before investors fully commit.  According to him, this could happen through price stability above key levels.

He called attention to XRP’s trading volume during the ensuing pullback. While volume increased, it didn’t surge to extraordinary levels, which could indicate hesitation among sellers. 

Similarly, the current pullback has shown relatively low trading volume, suggesting it might be a temporary correction rather than the start of a bearish reversal. This adds weight to the theory that XRP could continue its upward trajectory once the market digests recent gains.

However, The Crypto Basic recently confirmed that XRP Open Interest in the derivatives market has surged to a new peak above $5 billion during the correction. 

Arthur also highlighted the relative strength index (RSI). At 59.72, XRP’s RSI indicates moderate bullish sentiment. Importantly, it remains below the overbought threshold of 70, signaling that there is room for further price appreciation. 

XRP Profit-Taking Zone

Meanwhile, the analyst identified several key levels that traders should monitor. On the downside, $2.50 is an important support level, as it was the previous resistance before the breakout. 

According to him, if this level fails to hold, deeper support zones at $2.20 and $1.80 could come into play. On the upside, $2.80 is the next significant resistance target, followed by the psychologically important $3.00 mark. Arthur noted that these levels serve as profit-taking zones for investors.

Arthur presented two potential scenarios for XRP’s near-term direction. If the asset successfully retests $2.50 as support while maintaining momentum, it could rally toward $2.80 or even $3.00. 

5/ Scenarios to Consider:
📈 Bullish:
A successful retest of $2.50 with continued volume and RSI above 50 confirms a move toward $2.80 or $3.00.
📉 Bearish:
If XRP falls back into the triangle with increased selling volume, a drop to $2.20 or even $1.80 is possible.

— Arthur (@XrpArthur) January 12, 2025

On the flip side, if selling pressure increases and XRP falls back into the symmetrical triangle, it could retrace to $2.20 or $1.80. In either case, the analyst urged traders to monitor volume.

He also discussed the importance of liquidity zones, essentially areas where significant trading activity occurs. Between $2.80 and $3.00, Arthur identified an upper liquidity zone where many short sellers might have placed stop-loss orders. 

If breached, these levels could trigger additional buying pressure, pushing prices higher. Conversely, the lower liquidity zone between $2.20 and $1.80 could act as a magnet for accumulation if prices dip, setting the stage for a rebound.

Despite the pullback, Arthur remains optimistic. The rally demonstrated bullish momentum, but confirmation at key levels remains essential. At press time, XRP has broken below $2.50, now trading for $2.44 amid a 3.45% drop in the past 24 hours.