XRP Price Action Is Just Noise Unless It Breaks These Two Key Levels

A notable market commentator believes XRP price action is still noise until it breaks above a critical decisive level.

For context, XRP has been on an impressive recovery streak, crossing the $2.4 threshold to reach $2.45 amid an 11% weekly gain. 

Despite this bullish momentum, prominent analyst EGRAG Crypto argues that XRP’s price movements remain inconclusive until it breaks through key levels. He highlighted the importance of the $2 and $2.6 thresholds in determining the next phase of XRP’s trajectory.

Level XRP Needs to Breach

The analyst’s accompanying chart shows XRP’s consolidation within a symmetrical triangle pattern. Notably, the chart displays a narrowing range, with XRP’s price oscillating between $2 and $2.6. 

#XRP – Noise Until we break any of my targets: https://t.co/uaKF1CusVw pic.twitter.com/fyD1ydVxig

— EGRAG CRYPTO (@egragcrypto) January 1, 2025

According to the market analyst, the $2.6 resistance zone mirrors the previous resistance levels of $0.60, $0.65, and $0.75 observed earlier in 2024—though now shifted $2 higher. Throughout 2024, XRP oscillated below these levels and did not make a decisive move until it broke above them.

The analyst says breaking above $2.6 could similarly signal a breakout toward higher targets, while a confirmed drop below $2 could lead to bearish price action. As XRP closed 2024 above $2, it demonstrated resilience, but it still needs to conquer $2.6 for a decisive push up.

However, on the downside, he warns of risks if XRP drops below $2, leading to further declines. For now, the symmetrical triangle remains intact, with XRP consolidating and testing these boundaries.

XRP Now in a Bullish Position 

Further, adding strength to the bullish case, EGRAG highlighted favorable indicators. Particularly, the Stochastic RSI is retesting with a bullish cross underway, signaling potential upward momentum. 

In addition, on the 3D chart, the Relative Strength Index (RSI) has rebounded from the 65 level and aims to push toward the 70–74 region, which would confirm stronger buying pressure.

Meanwhile, in a separate report, another analyst, Dom, compared XRP’s current price action and its performance during the 2017 bull run, calling attention to the ongoing consolidation pointed out by EGRAG.

$XRP 2017 vs NOW ‼️

It's pretty remarkable how similar these structures look

-Both retested 20-40 day EMA band as support
-Both had around a 30 day consolidation before putting in another leg up

Will it be this easy? https://t.co/CEgfBkGvXF pic.twitter.com/xnmiwde5SF

— Dom (@traderview2) January 2, 2025

Dom noted that in this cycle and in the 2017 cycle, XRP consolidated around the 20–40 day Exponential Moving Average (EMA) after an initial rally. In 2017, this pattern led to a second leg up, eventually propelling XRP to its all-time high of $3.31 in January 2018.

Similarly, with XRP now consolidating around the EMA bands after a rally and a pullback, Dom believes history could repeat. He says XRP’s 30-day consolidation period could set the stage for another breakout, especially following its strong weekly performance. 

Potential On-Chain Catalyst

Moreover, on-chain developments could also help in boosting XRP’s price action. Polymarket, a blockchain-based prediction platform, now estimates a 70% likelihood of XRP securing ETF approval in 2025. 

There's a 70% chance $XRP (Ripple) gets an ETF approval this year. pic.twitter.com/yNXUWagHoi

— Polymarket (@Polymarket) January 2, 2025

Major firms, including Bitwise and WisdomTree, filed for XRP ETFs last year. Approval of these funds could bring substantial institutional capital into XRP, amplifying its bullish momentum when a breakout from EGRAG’s symmetrical triangle occurs.