XRP’s price action in the final days of September was turbulent, with the cryptocurrency slipping below the $2.80 zone in a market-wide pullback. Despite the sharp drop, XRP managed to defend a key support level near $2.72, bouncing from that mark on September 26. This recovery, though modest, has led to new analysis suggesting that as long as this support holds, XRP could be positioned to lead the next rally in the market.
$2.72 Support Is The Line In The Sand
Technical analysis of XRP’s weekly candlestick timeframe chart shows that the cryptocurrency’s outlook is now bullish after holding up above an important level. This analysis, which was shared on the social media platform X, predicted that as long as this support holds, XRP could be positioned to lead the next rally for the entire crypto market.
The analyst noted the importance of the $2.72 level as an important support level that XRP has held up. This is in relation to how the XRP price broke below $2.8 last week. After crashing below $2.8, XRP managed to hold above $2.72, rebounding on it on September 26. Now, this move is what made XRP to be bullish.
According to the analyst, the successful defense of this support, followed by a close back above $2.80, has created the conditions for a slight bullish divergence. The weekly chart supports this view, showing that XRP has consistently rebounded on higher lows while maintaining a broader ascending structure. Holding $2.72 prevents a breakdown of this pattern and keeps the longer-term uptrend intact.
XRP’s Strength Against The Market
Even in the face of the recent correction, the analysis pointed out that XRP is one of the stronger performers in the market. The chart comparison with XRP dominance (XRP.D) indicates that the token may have already bottomed in relative terms.
According to the analyst, the XRP dominance bottoming means that the crypto can only start going up from here. This dominance means that XRP could play a leadership role if the broader crypto market begins to trend higher again.
Although the bullish case is worth noting, the analyst also warned against complacency among bullish traders. The start of a new week and month often brings volatility, and October could also start with some sort of volatility.
As such, the XRP price could still experience a flush lower before any meaningful rally takes hold. However, this capitulation moment could be the final shakeout before XRP begins a stronger leg upward.
The $2.72 support has become the line that separates the continuation of XRP’s bullish structure. As long as that level holds, the cryptocurrency’s outlook is bullish. At the time of writing, XRP is trading at $2.85, meaning that it has effectively registered a bullish close above $2.8.
Featured image from Getty Images, chart from Tradingview.com
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