XRP has successfully established a solid support base around the psychological level of $2.00, maintaining this position for approximately 14 months. Recent analyses indicate that a breakout from this consolidation zone could signal the end of the current downtrend and pave the way for a new bullish phase.
According to crypto analyst Darkfost, a significant reversal may occur similar to patterns observed in April 2025. Historical data suggests that excessive short positioning, which has been prevalent in the market, could fuel an upward move through short-squeeze dynamics.
Current data from CryptoQuant highlights that Binance funding rates have remained negative, reflecting a build-up of short positions. As XRP trades approximately 50% below its July 2025 peak of $3.66, it is undergoing a natural correction phase following a remarkable rally exceeding 600% since November 2024.
This consolidation phase is often viewed as healthy market behavior following significant price increases. Analysts note that while accumulated short positions exert immediate selling pressure, they simultaneously create latent buying pressure. Should prices begin to rise, forced liquidations of these short positions could amplify the upward momentum.
The weekly chart for XRP against USDT reveals price compression near a well-established demand zone, with current trading just below the 9-week Simple Moving Average around $1.96. The $2.00 level has proven resilient, absorbing selling pressure effectively over time.
Notably, XRP remains constrained below a descending resistance trendline and the critical horizontal resistance at $2.50. This level aligns closely with the 0.786 Fibonacci retracement, marking it as a pivotal breakout threshold. A weekly close above this zone could invalidate the corrective structure and facilitate movement toward the $3.00 to $3.10 range, where the 0.618 Fibonacci retracement resides.
The Relative Strength Index (RSI) is currently positioned in the low-40s, showing a clear bullish divergence that indicates diminishing downside momentum, despite the price trending lower.
As long as XRP maintains weekly closes within the $1.85 to $2.00 support band, the outlook favors ongoing consolidation followed by gradual upward attempts. A confirmed break above the $2.50 threshold would likely catalyze a trend expansion toward the $3.00 mark and beyond. Conversely, a decisive loss of the $1.85 support could challenge the bullish divergence and expose XRP to a deeper retracement.
In related news, the presale project Maxi Doge has garnered significant attention, raising $4.5 million. This memecoin initiative is attracting investors seeking high-return opportunities in the sector, especially if XRP commences a bullish run toward $3.00. The MAXI presale offers 70% annual staking rewards at the current price point, presenting an attractive option for those interested in the memecoin space.
Investors can explore participation in the presale by visiting the official Maxi Doge website and connecting a cryptocurrency wallet. The token is purchasable using USDT, ETH, or direct bank card payments for immediate access.
