Here’s Why XRP Is About to Break the Tension Soon

According to a prominent analyst, XRP is approaching an important moment as major signals converge to indicate a possible breakout. 

Specifically, amid XRP’s current price struggles at the lower end of the $2 price region, the 1-day chart shared by analyst Dark Defender shows XRP forming a tight squeeze at the intersection of multiple important indicators. 

XRP Sees a Confluence of Major Indicators

These include a descending resistance trendline, Fibonacci retracement levels, the Ichimoku Cloud, a cup pattern, and clustered Exponential Moving Averages (EMAs). All these elements are moving to a high-confluence zone that could trigger a major price move in the days ahead.

The chart begins in January 2025 when XRP reached a local peak of $3.4 and retraced. Following that high, XRP entered a downward trajectory that continued until April, creating the base of a cup formation at a low of $1.61 on April 7.

This cup has been developing for months, gradually arching upward, and now XRP trades near the cup’s rim. Notably, the rim is the area often referred to as the surface of the pattern. This surface aligns with major resistance and is where several other important indicators now converge.

Another prominent indicator is the descending trendline, which began after the January peak. Importantly, this line has capped multiple price rallies and still acts as a ceiling to upward movement. At the time of reporting, XRP has returned to this resistance level, but this time, it does so while supported by other bullish patterns. 

XRP Ichimoku Cloud, EMAs, and Fib Retracements

Another indicator is the Ichimoku Cloud, which dominates a portion of the chart from February through June. Right now, the price is trading inside the cloud. Typically, being inside the cloud suggests indecision, with neither bulls nor bears holding control. 

However, the cloud in this case is very thin around the current price, which often signals an imminent breakout. Thin clouds provide little resistance or support, making them ideal zones for swift moves once the price escapes either side. As XRP tests this area, the Ichimoku structure bolsters the overall tension.

Meanwhile, adding to the pressure is the tight clustering of EMAs. Several EMAs are nearly overlapping in the current range. Notably, such compression often precedes sharp price volatility, as the market coils before releasing energy in one direction.

In addition, Dark Defender referenced the Fibonacci retracement levels measured from the January high. Currently trading for $2.16, XRP sits below the 61.8% retracement at $2.1958 and the 70.2% level at $2.2895. Just below its current price position lies the 50% retracement at $2.0706, which acts as a strong support level. 

The confluence of all these signals – the descending resistance line, the narrow Ichimoku Cloud, the Fibonacci levels, the cup pattern structure, and the tight EMA bands – translates to an imminent release of tension, and Dark Defender expects this to occur soon.

Specifically, the market analyst identified immediate targets at $2.22 and $3.61, while pointing to $2.0706 as a key support. He suggested that the cup is now “hot,” and market participants should prepare themselves for a decision soon. At its current price, XRP must rise 67% to claim $3.61.