XRP has spent the last few hours trading in a narrow range, creating the type of discreet price movement that typically precedes a decisive intraday move. While the overall market sentiment remains mixed, short-term traders are now focused on a technical shift that could signal a new bullish momentum.
In a recent post on X, Bird (@Bird_XRPL) highlighted a developing bullish structure on the hourly chart of XRP, suggesting that the market may be preparing for a move back above the $2.00 level. Instead of focusing on speculation, Bird pointed to a specific breakout and retest formation that traders often interpret as a confirmation signal.
A break of a downtrend that alters the structure.
On the one-hour chart, XRP was trading below a well-defined descending trendline, which acted as consistent resistance after a local high. Each recovery attempt faced resistance, reinforcing the bearish dominance over the short-term structure. This dynamic began to change when the price decisively broke above the trendline, signaling a possible break in the prevailing downtrend.
Instead of rising quickly, XRP pulled back towards the former resistance area. This movement allowed the market to test whether buyers could defend the level that previously constrained price action. The successful retest marked an important structural change, as the trendline began to act as support instead of resistance.
Why does the backtest reinforce the bullish thesis?
Breakouts often fail without confirmation, but a clean backtest improves the reliability of the signal. XRP held firm in the $1.88 to $1.90 region during the retest, suggesting that buyers stepped in to absorb the selling pressure. This behavior indicates increasing confidence among buyers and reduces the likelihood of a false breakout.
Bird noted that this structure typically precedes continuation moves when the price stays above the recovered level. As long as XRP remains above the former trendline, the bullish setup remains intact and favors new highs.
The Way Back to $2
With the price stabilizing near $1.88 at the time of analysis, XRP is very close to the important psychological mark of $2.00. A sustained rise, especially with increased volume, could quickly drive the price back above this level. Recovering the $2 would change the intraday sentiment and attract momentum traders, who tend to react to breakouts of round numbers.
However, the setup depends on the continued support from the controlling company. A drop below the reclaimed trendline would weaken the bullish outlook and signal that sellers have regained control in the short term.
What traders should watch next
In the coming hours, investors will closely monitor XRP's behavior in the $1.88 to $1.90 range. Continued consolidation above this area reinforces the breakout outlook, while a strong continuation of this movement could validate a short-term high above $2. For now, the hourly chart suggests that momentum may be subtly shifting in favor of XRP, making today's session worthy of attention.
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Remember folks, that nothing said here represents a recommendation to buy, sell, or hold assets.
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