XRP price stabilizes near $2.35 with breakout or breakdown in focus for May 21
XRP price stabilizes around $2.35, with bulls eyeing $2.42 breakout for further upside
XRP is currently trading around $2.35, showing signs of stabilization after a brief dip to $2.33 earlier in the day. Over the past two days, XRP has remained within a tight range between $2.33 and $2.41, with resistance at $2.40 holding firm and support at $2.34 providing a floor for the price. Despite some momentum earlier in the week, the market is showing indecision, leading traders to question whether the current consolidation will result in a breakout or breakdown.
Highlights
- XRP stabilizes around $2.35 after rejection at $2.40.
- Short-term indicators show weakening bullish momentum, with support at $2.34 critical.
- A breakout above $2.42 could push XRP toward $2.47, while failure to hold $2.34 may lead to a pullback to $2.27.
The price action of XRP has created a critical test for bulls. With resistance levels forming near $2.40, the market is showing signs of indecision. While there are still key support zones in place, the lack of clear momentum signals that a breakout or breakdown may occur depending on the market’s ability to overcome these barriers.
XRP price forecast (May 2025) Source: TradingView.
XRP price action and technical indicators
XRP is currently wedged between the 50 EMA and 100 EMA on the 4-hour chart, with a strong support level at $2.34. Bollinger Bands are tightening, signaling that a larger directional move could be approaching. The RSI, which has drifted lower to 41, and the MACD histogram showing weakening bearish momentum, indicate a lack of clear momentum in either direction. XRP is also testing a previously broken trendline at $2.35, which had acted as support earlier in the month. If the price fails to hold this level, it could drop toward lower demand zones at $2.27 or $2.20.
The Ichimoku Cloud on the 1-hour chart adds to the neutral-to-bearish outlook, with XRP trading just inside a thinning cloud, below the Kijun-sen, and the Chikou Span lagging behind price. These signals suggest indecision in the market, which is reflected in the ongoing volatility and uncertain near-term outlook for XRP.
Short-term outlook and key levels to watch
For May 21, traders should closely monitor the support levels at $2.34 and $2.27. A breakdown below these levels could lead to further declines toward $2.20 or $2.05. On the flip side, a move above $2.42 would negate the current bearish bias, potentially opening the door for a push toward $2.47 and eventually $2.66.
As previously discussed, XRP is still positioned above the 0.5 Fibonacci retracement on the weekly chart, maintaining its broader bullish structure. However, upward momentum will remain capped unless bulls can establish a sustained move above $2.50
