- XRP trades near $3 under a descending resistance line as Lark Davis charts a $4 target.
- A close above $3 with stronger volume could confirm breakout and start a run toward $4.
- Retail FUD and Teucrium’s ETF launch add mixed signals but keep traders focused on $2.94 support.
XRP traded just below a long-standing descending resistance line that has rejected bullish attempts since mid-2025.
Prominent analyst Lark Davis shared a chart highlighting a descending triangle pattern, showing the token compressing toward a critical breakout point.
At around $2.96, XRP faces immediate resistance near $3.00, while the 20-day EMA at $2.94 serves as its first support line.
XRP Bulls Target $4 If Breakout Holds
Lark Davis highlighted $4 as the upside target if XRP can break above its trendline resistance. A successful breakout could invalidate the bearish structure and trigger a sharp rally.
The first technical hurdle after breakout sits around $3.40, a zone that may determine momentum toward the $4.00 measured move.
XRP Momentum Indicators Stay Neutral
The Relative Strength Index (RSI) hovered near 44, showing neutral momentum, while the MACD flattened around the zero line, indicating a lack of clear direction.
The Chaikin Money Flow (CMF) is slightly positive but weak, reflecting cautious inflows. Volume hasn’t yet shown the surge typically seen before a major move.
With XRP trapped between the $2.95 to $3.00 zone, the coming sessions could decide its medium-term trend. A clean close above the descending resistance line may ignite a rally toward $4.00, while rejection could push prices back to the $2.60 support. Traders should watch for a volume-supported move as the key confirmation trigger.
FUD Levels Could Play in XRP Bulls’ Favor
Santiment data showed that XRP retail FUD is at its highest since President Trump’s tariff announcement six months ago. The firm reported that two of the last three days recorded more bearish mentions than bullish ones. Historically, such sentiment extremes have preceded rebounds, as prices often move opposite to retail bias.
Teucrium 2x Long Daily XRP ETF Starts Trading Despite US Government Shutdown
The Teucrium 2x Long Daily XRP ETF launched on schedule despite the ongoing US government shutdown, which has paused most SEC operations. This raised eyebrows, as the SEC is currently not approving routine filings like ETF listings.
Related: XRP and Bitcoin Lead Record $5.95 Billion Institutional Inflows Into Crypto Funds
According to experts, the ETF wasn’t explicitly approved but it became effective automatically after a regulatory deadline passed without objection. This is often referred to as “silence is compliance.”
Journalist Eleanor Terrett explained that the ETF is registered under the Investment Company Act of 1940, not the Securities Act of 1933 like spot crypto ETFs. Because it holds Treasuries, cash, and swap contracts, not actual XRP, it didn’t need the SEC to sign off.
Related: XRP Builds Strength Above $3 as Analysts Track Final Test Before $5 Breakout
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