XRP has staged a strong rebound from a key support zone at $1.92 following a multi-day correction, providing temporary relief for bulls. The move came after price tapped a critical liquidity area just below the value area low (VAL) of its current trading range, a textbook setup for a liquidity sweep and bullish reaction. This bounce propelled XRP back above the point of control (POC) of the range, indicating a shift in short-term sentiment. However, the recovery now faces a key test at $2.09, which has acted as a pivot support in previous sessions. A close below this level risks invalidating the rally and exposing the asset to further downside.

$1.92: A Classic Liquidity Zone

The dip to $1.92 was no accident. This level was strategically important as it lay just under the VAL, a spot typically targeted during liquidity hunts. These sweeps often trigger stop-losses, allowing large buyers to enter at a discount before driving price higher. XRP’s reaction was swift and decisive, bouncing sharply back into the range. This confirms the presence of aggressive buyers around the $1.92 level. From a technical standpoint, this behaviour points to strong demand and a possible reversal, assuming key levels hold.

Key Level to Watch: $2.09

Despite the impressive bounce, the real test lies at $2.09. This level marks a crucial support pivot that has previously held price in place. As of now, XRP is trading just above this level, but volume remains light, a concern for bulls seeking confirmation of a trend reversal. Holding $2.09 is vital to preserve bullish momentum. If XRP fails to defend this level, the rally could turn into a bull trap or short squeeze fakeout. Such a breakdown would likely drag the price back toward the $1.92 level or even lower, depending on market conditions. On the flip side, maintaining support at $2.09 opens the door for a retest of resistance near $2.28. This upper range has historically capped XRP rallies and will serve as the next upside target if buying strength returns.

Volume Lagging Behind Price

While the technical structure shows signs of recovery, one major caveat remains: weak volume. The current move has not been accompanied by significant trading activity, which raises concerns about its sustainability. Volume is a critical confirmation tool in technical analysis. Without strong buying pressure, price movements are more likely to fail, especially around key levels like $2.09. For this reason, traders should watch for a volume spike to confirm whether bulls are truly in control. Until then, XRP may continue to range between $1.92 and $2.28, offering opportunities for short-term range traders but posing risks for trend followers seeking breakouts.

Range-Bound or Breakout Ahead?

XRP’s future trajectory hinges on its ability to hold $2.09 and attract more volume. If these conditions are met, bulls could mount a push toward $2.28 and potentially reclaim even higher levels. However, failure to defend support would indicate that the recent rally was nothing more than a temporary reaction to a liquidity sweep, not the beginning of a sustained bullish trend. In the near term, traders should be prepared for continued sideways movement, with XRP offering opportunities both for long setups off support and shorts near resistance. The breakout or breakdown that follows will likely set the tone for XRP’s next major move.