TLDR
- XRP has been trading below EMA ribbons for 37 days, a pattern that historically precedes price rallies
- Analyst Steph predicts a potential price reversal soon, with a key breakout level at $2.35
- Negative funding rates and many traders shorting XRP could lead to a “short squeeze” and accelerate price growth
- XRP is currently trading at $2.25, up by more than one percent in the last 24 hours
- The cryptocurrency is stuck in a sideways range between support and resistance zones of $2.25-$2.30
XRP is showing signs of a potential price reversal according to market analyst Steph. In a recent X post, the analyst shared detailed insights about XRP’s current market position and its possible price movement in the coming weeks.
THE FINAL COUNTDOWN HAS STARTED FOR #XRP.. pic.twitter.com/ndaIDpb995
— STEPH IS CRYPTO (@Steph_iscrypto) March 12, 2025
XRP has been trading below the exponential moving average (EMA) ribbons for 37 days since early February. This technical indicator is important for traders who use EMA ribbons to spot market trends.
When a cryptocurrency trades below these ribbons, it shows bearish momentum. This is the case with XRP right now.
Steph pointed out that the last time XRP traded below the ribbons was in October 2024. During that period, XRP stayed in the bearish zone for 35 days before breaking through.
XRP Price
That breakthrough led to a major price rally. XRP jumped from around $0.50 to over $3 before the current correction began.
The analyst looked at other times when XRP dipped below the EMA ribbons. In April 2024, XRP spent 90 days below the ribbons before seeing a 43% price rally.
Another example happened in August 2023. XRP stayed below the ribbons for 64 days, then rose by 47% after breaking through.
Based on these patterns, Steph believes XRP might be close to a similar breakout. The worst-case scenario would be spending 90 days below the EMA ribbons.
A more moderate case would be 64 days. With XRP already at 37 days below the ribbons, Steph sees reason for optimism about a possible price reversal soon.
The analyst identified $2.35 as a key price level to watch. If XRP breaks above this mark with a daily close, it could trigger a major rally.
Based on previous movements, Steph expects at least a 40% rally, with potential for even higher gains.
Another factor that could boost XRP’s price is the current funding rates. Steph noted that these rates are very negative, with many traders shorting XRP.
“This creates a lot of liquidity above us with very little below. Price typically targets the highest liquidity, so a massive short squeeze is likely to occur soon,” Steph explained.
A short squeeze happens when traders who bet against an asset are forced to buy it back at higher prices. This could accelerate XRP’s price increase.
In the shorter term, XRP recently bounced from a support area to a resistance zone between $2.25 and $2.30. The price is now struggling at this level.
If XRP breaks above $2.30 and closes above this mark, it could move toward $2.50-$2.60. The next major resistance area is between $2.65 and $2.80.
Currently, XRP is trading sideways, creating opportunities for traders to buy at support and sell at resistance. A confirmed breakout above resistance could lead to short-term gains.
At the time of writing, XRP is trading at $2.25, up by more than one percent in the last 24 hours. Meanwhile, Bitcoin is down by more than two percent, trading at $81,000.
