XRP’s momentum stalls as breakout potential builds

8th June 2025 – (New York) On 7th June, 2025, XRP was trading at $2.19, boasting a market capitalization of $128 billion and a daily trading volume of $1.33 billion. The cryptocurrency exhibited a narrow price range between $2.16 and $2.19, hinting at subdued volatility as traders anticipated a possible breakout.

On the hourly chart, XRP maintained a tight price consolidation between $2.17 and $2.19, underscoring limited momentum as market participants awaited a catalyst. The short-term scenario reflected low volatility and uncertain sentiment, hinting at a potential breakout. Key levels to watch include a breach above $2.20, which could trigger an upswing towards $2.24 to $2.26, or a drop below $2.15, potentially leading to a decline to $2.10. Traders are advised to adopt nimble scalping strategies given the current price action, while larger directional moves await confirmation.

The 4-hour chart indicated a recovery effort post a sharp decline, with XRP bouncing back from a double-bottom formation near $2.059. While the price reclaimed the $2.18 level, signs of weakening upward momentum were evident. Strong resistance around $2.28 and diminishing follow-through actions raised concerns of a potential bearish flag formation. Traders may consider strategic long entries between $2.14 and $2.20, closely monitoring price dynamics around $2.28, a critical level that could trigger short positions targeting a move towards $2.10.

From a daily chart perspective, XRP continued within a mid-term downtrend post its peak at $2.655, currently forming a base around $2.06 to $2.15 after testing this support level. Resistance is anticipated in the $2.25 to $2.30 range, with declining volume indicating tepid buying interest following a previous sell-off. A sustained move above $2.25, preferably backed by a bullish engulfing candle and notable volume surge, would be essential to confirm any potential trend reversal. Until then, downside risks loom if the $2.06 support is breached.

Oscillator readings on 7th June indicated a predominantly neutral stance, with the RSI at 45.12, Stochastic oscillator at 28.31, and CCI at -73.92. The ADX reading of 19.71 pointed to weak trend strength, while the Awesome oscillator showed a slight bearish bias at -0.11975. The momentum remained modestly bullish at -0.08820, whereas the MACD level stood at -0.04065, revealing a bearish crossover and hinting at a continued lack of bullish momentum.

In terms of moving averages analysis, a mixed to bearish outlook was observed. The 10-period EMA at $2.19808 signaled a sell indication, contrasting with the positively positioned 10-period SMA at $2.18286. Short to medium-term EMAs and SMAs, including the 20, 30, 50, and 100 period measures, issued bearish signals, underscoring downward pressure. The bullish signal from the 200-period EMA at $2.08188 offered a faint positive signal, while the 200-period SMA at $2.34319 remained in bearish territory, emphasizing the current negative momentum unless a substantial reversal occurs.

A sustained move above $2.20, coupled with a breakthrough of the $2.25 resistance on significant volume, could confirm a bullish reversal, potentially driving XRP towards $2.30 and beyond.

Conversely, failing to maintain above $2.15 and dropping below $2.06 could lead XRP back into its broader downtrend. Traders should closely monitor developments around key levels for strategic entry and exit points. On 9th June, the SEC is set to host a round table on crypto regulation, likely discussing the ongoing Ripple case. Commissioner Crenshaw’s dissent against the SEC-Ripple settlement agreement and joint filing may fuel discussions around the SEC’s evolving stance on crypto regulation.