XRP Holds Key Support as Bullish Momentum Builds
XRP fell from a weekly high of $1.50 to below $1.30 after the US Senate failed to advance the CLARITY Act, but later recovered to above $1.30. Analyst Ali Martinez identified $1.31-$1.35 as the key short-term support zone for XRP. A sustained hold could allow the token to test resistance at $1.38-$1.40 and then $1.50-$1.54.
Futures open interest fell by more than 20% during this week’s deleveraging, indicating that excess leverage and speculative positions were flushed from the market. This may limit immediate upside momentum but could reduce the risk of further forced liquidations.
Analyst Bird noted improving altcoin momentum and the possibility of capital rotating from Bitcoin into alternative cryptocurrencies. XRP slightly outperformed BTC during Friday’s rebound. Its five-day moving average is also approaching the 200-day moving average, raising the prospect of a golden cross, a traditionally bullish technical signal.
However, XRP must first defend support and reclaim $1.40 before the bullish setup strengthens. A break above $1.50 would provide stronger confirmation. XRP remains vulnerable to regulatory headlines, Bitcoin market direction and broader altcoin flows.
Neutral
The immediate market impact is neutral because the article presents a conditional bullish setup rather than confirmed trend reversal. XRP suffered an approximately 8% daily decline after the CLARITY Act setback, showing that regulatory uncertainty can quickly trigger selling. The $1.31-$1.35 area is now the key level for short-term traders. A break below it could expose XRP to renewed downside and additional liquidation pressure.
The decline in futures open interest of more than 20% is mixed. It shows that leverage has been reduced, which may improve market stability after the recent deleveraging. However, lower open interest can also mean weaker immediate buying power. The potential golden cross and XRP’s slight outperformance against BTC support a cautiously constructive view, especially if capital rotates into altcoins.
In the short term, traders are likely to monitor support at $1.31-$1.35, resistance at $1.38-$1.40 and the larger $1.50-$1.54 zone. Holding support and reclaiming $1.40 could attract momentum buyers, while a break above $1.50 may confirm a stronger recovery. Similar technical signals in past crypto cycles have often encouraged buying, but they have also produced false signals when macro conditions or Bitcoin weakness dominated. Longer term, XRP’s direction will depend on regulatory developments, broader altcoin liquidity and sustained spot demand rather than the moving-average crossover alone.