XRP is approaching a critical technical juncture after entering a 20% correction from its recent local high. On-chain data points to several key support and resistance levels that could determine the cryptocurrency’s next move.
XRP support zone near $1.35
According to market analyst Ali Martinez in an August 29 X post, XRP rallied 71.8% from $0.988 to $1.698 before pulling back to test a major demand zone between $1.35 and $1.38.
Glassnode’s UTXO Realized Price Distribution (URPD) data shows that approximately 3.2 billion XRP were previously traded within this range, making it one of the asset’s most significant support areas.
The concentration of trading activity suggests that many holders accumulated XRP in this zone, potentially creating strong buying interest if the cryptocurrency remains above the support region.
Key XRP resistance levels
The URPD data also identifies several major resistance levels above the current price. The first notable barrier is at $1.60, where approximately 1.99 billion XRP were traded.
XRP price analysis chart. Source: Glassnode
Another resistance level is located at $1.68, supported by about 1.98 billion XRP in historical trading volume.
The most significant resistance appears at $1.86, where approximately 3.47 billion XRP previously changed hands. This represents the largest concentration of trading activity above the current support zone and could become a major hurdle for bulls attempting to regain momentum.
If XRP successfully defends the $1.35-$1.38 support region and reclaims the higher resistance levels, a move above $1.86 could open the door to further gains. Beyond that level, Martinez identified $2.19 as the next major target, where another 3.12 billion XRP were traded, according to URPD data.
XRP price outlook
A sustained breakout above $1.86 would indicate that buyers had absorbed a significant amount of overhead supply, increasing the likelihood of a rally toward the $2.19 area.
At press time, XRP was trading at $1.39, down nearly 6% over the past week.
XRP seven-day price chart. Source: Finbold
Despite the recent correction, XRP remains technically bullish, trading above its 50-day simple moving average (SMA) at $1.13 and its 200-day SMA at $1.28. This positioning suggests that the broader uptrend remains intact, with both moving averages potentially acting as support during pullbacks.
Meanwhile, the 14-day relative strength index (RSI) stood at 64.75, just below the overbought threshold of 70. The reading points to strong buying momentum while suggesting that XRP may be approaching a zone where short-term upside could become more limited if buying pressure accelerates further.
Featured image via Shutterstock
