The XRP price is showing signs of a potential breakout, with a crypto analyst pointing to key technical indicators that suggest a potential surge to $4. Notably, the cryptocurrency has been trading within a descending trendline, but a decisive move above this resistance could ignite a long-awaited rally to a new all-time high.

XRP Price Eyes Breakout To $4

According to pseudonymous TradingView crypto analyst ONE1iMPACT, the XRP price has been making lower highs, forming a descending trendline on the 8-hour chart. The analyst’s chart analysis highlights key technical indicators based on price action that suggest that the XRP price may be gearing up for a possible rally to $4.

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XRP’s projected surge to a $4 ATH is dependent on how it reacts to the descending trendline, which acts as a critical resistance area. With this in mind, a breakout and close above this trendline with higher-than-average volume signals bullish momentum for the XRP price.

Interestingly, the analyst disclosed that the market is currently hovering near or just below a key Moving Average (MA), indicated by the blue line in the chart. If XRP’s price can reclaim and hold above this MA, it would reinforce its bullish position and solidify the analyst’s optimistic price target. On the flip side, if it remains below this MA, the TradingView expert believes that it would put a barrier to its upside potential. 

Moving forward, the analyst has shared key technical areas that could determine XRP’s next price movements. He revealed that if the cryptocurrency breaks above the descending trendline, the next major resistance area is the horizontal level around $3.40. Furthermore, a confirmed breakout could send its price toward $3.9 – $4.00, aligning with the target shown by the grey arrow in the chart. 

The TradingView crypto expert warned investors and traders to pay attention to the volume and momentum of XRP as it aims for a descending trendline breakout. He explained that a low volume push above the trendline is a clear indication of a possible fakeout, where traders could be lured into entering long positions, only for the price to trace quickly. On the other hand, a high volume surge confirms the conviction of XRP’s bullish potential, leading to a sustained upward momentum and increasing prices. 

The analyst also added that oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) could help traders gauge whether XRP’s momentum is building or fading as its price approaches the descending trendline resistance. 

Possible Downside Target If Resistance Fails

In his analysis, ‘ONE1iMPACT’ also shared a bearish outlook for the XRP price if it fails to break and close above the descending trendline resistance. The TradingView analyst revealed that a rejection at this trendline could trigger further consolidation and decline for XRP. 

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He has shared several important support levels that could help prevent an even deeper correction in the XRP price. The $2.0 and $2.1 region, marked by the pink and gray box on the chart, acts as a strong support area for XRP, where buyers have stepped in before. 

If the XRP price loses this zone, the analyst predicts a major breakdown toward $1.8 – $1.77. Another decline below this price low could result in a much larger correction.

Featured image from Adobe Stock, chart from Tradingview.com

Solana (SOL) has struggled to maintain upward momentum in recent weeks. Although the cryptocurrency showed signs of an uptrend, it is now facing challenges due to declining demand for SOL. 

The market environment is also deteriorating, which is contributing to the struggles. At $129, Solana is stalled below the key $135 barrier. There is no clear indication of a breakout in sight.

Solana Struggles To Find Demand

The Velocity of Solana has fallen to a 5-month low, signaling weakening demand. Velocity measures the rate at which an asset is circulated within the market. Solana’s current circulation levels are on par with those seen in October 2024, a clear indicator that the cryptocurrency is losing traction. 

The drop in Velocity suggests that fewer investors are actively trading SOL, further adding to the bearish sentiment surrounding the token. This lack of demand makes a recovery increasingly difficult, as it implies that traders are hesitant to enter the market.

The ongoing low demand for SOL further confirms a bearish outlook. Many investors are likely waiting for a more favorable environment before committing to new positions, which could delay any potential recovery as the token struggles to attract fresh capital.

Analyzing the 2-week Market Value to Realized Value (MVRV) Ratio, a key metric that tracks the average profit or loss of recent buyers, reveals that the ratio is currently below the zero line. This suggests that investors who purchased SOL within the last two weeks are now facing losses.

This situation could lead to one of two scenarios: either investors hold their positions, hoping for a price recovery, or they sell to cut their losses.

If the latter occurs, increased selling pressure could push the price lower and potentially invalidate any attempts at recovery. In this scenario, the market would likely remain bearish until sentiment shifts.

SOL Price Is Struggling

Solana is currently trading at $130, struggling to break through the critical $135 resistance. While there has been a short-term uptrend, the likelihood of SOL breaching this level seems low. This suggests that the price could remain range-bound for the near future.

The combination of low demand and weak market sentiment points toward a potential decline. Solana may fall through its uptrend support line, with the next significant support levels lying at $125 and potentially $118.

This scenario would delay any recovery, pushing the token further into a bearish trend.

On the other hand, if Solana manages to break through the $135 resistance, the altcoin’s price push toward $148. A sustained move above this level could propel SOL to $150, invalidating the bearish outlook.