After a potential ADA ETF, including Cardano in the U.S. strategic reserve offered strong bullish momentum. Along with the other cryptos within the markets, the ADA price also faced one of the brutal bearish attacks, but the third-generation token demonstrated massive strength. The buying pressure is slowly increasing, suggesting the bulls are slowly reclaiming their dominance. Therefore, the price may eventually reclaim the lost levels above $1 if this trade plays out well. 

The whale movement is closely monitored, as it is considered one of the biggest signals before a change in the trend. An accumulation flutters bullish flags over the crypto, while a liquidation raises huge concerns over the upcoming price action. However, during the recent price drop, the whales accumulated a huge amount of ADA, which suggests their growing confidence in the token. 

The data shared by a popular analyst, Ali, suggests the addresses holding ADA tokens between 100 million and 1 billion have accumulated over 420 million ADA soon after Donald Trump announced the US strategic crypto reserve. 

Another major reason behind the rise in confidence is the involvement of the Cardano founder, Charles Hoskinson, in the U.S. administration. With these positive advancements, the market participants appear to have become bullish on the upcoming ADA price rally. Meanwhile, the price is approaching the crucial resistance, clearing which it could not only reclaim $1 but mark fresh monthly highs as the majority of the indicators that were turning bearish have refrained from doing so. 

The recent upswing has pushed the ADA price above the descending parallel channel, which, unfortunately, has turned out to be a false breakout. However, the bulls have regained a strong hold on the rally, and as a result, the price is moving back to surpass the channel’s resistance. The CMF and OBV exhibited a bullish divergence, suggesting the increasing strength of the bulls, which may confirm the onset of a bullish trend. 

Consequently, the Cardano (ADA) price is expected to sustain a solid ascending trend over the next few days and likely surpass $1 at any moment. Nonetheless, the true target for the token is set at $1.2, and if it exceeds this, it may advance towards new yearly highs above $1.5. 

Ripple’s XRP has seen a notable bounce in the past 24 hours, rising by more than 6% to trade at $2.44. As the broader cryptocurrency market experiences a bullish surge, with Bitcoin surpassing $86K and ADA up 16%, XRP eyes the $2.50 mark. However, despite these positive movements, XRP faces some potential headwinds as bearish divergence signals caution for the short-term price action.

XRP’s Short-Term Bounce: Support Levels

XRP has been showing strong recovery after bouncing off key support levels between $2.25 and $2.30. This area has held firm in the last few days, acting as a solid foundation for the token’s rebound. If the price continues to respect this support zone, it could pave the way for further upside in the near term, with the immediate target set at the $2.50 level.

The Relative Strength Index (RSI) has recently reset to neutral levels, which often leads to more stable price action. This reset suggests that XRP could experience some sideways movement in the short term, especially if momentum remains weak. If XRP holds its ground around the $2.25–$2.30 support zone, it might consolidate before making another move towards higher resistance levels.

However, should the price drop below the $2.25 support, XRP could test the next significant support level at $2. If this lower support is broken, the price could face further declines, making it crucial for XRP to hold above $2.25 to maintain its bullish prospects.

Resistance Levels to Watch

As XRP inches closer to the $2.50 mark, traders will be closely watching the key resistance levels ahead. The first immediate resistance is at $2.50, which has been a point of interest for traders in recent price movements. If XRP manages to break through this level, the next resistance zone lies between $2.65 and $2.80. These levels could serve as a major hurdle for XRP, as the price has struggled to sustain above these areas in the past.

A significant psychological barrier will also be at $3.00. If XRP successfully breaks the $2.80 resistance, it could set its sights on reclaiming $3.00. However, this is a critical level, and a significant battle will ensue if XRP reaches this point. The combination of resistance at $2.80 and the $3.00 level suggests that the road ahead will be filled with potential obstacles for XRP.

Bearish Divergence and Its Implications

While XRP has shown strong bullish signs, there are still concerns over a bearish divergence in the market. On the 3-day chart, XRP has been making higher highs, but the RSI has been making lower highs. This pattern is typically seen as a bearish divergence, which could signal that the upward momentum is losing steam, even though prices are still climbing.

According to analyst Josh from Crypto World, the divergence has been present for some time, and despite short-term bounces, it suggests that XRP may struggle to maintain strong bullish momentum. The bearish divergence indicates that the market may not be able to sustain further gains unless there is a clear shift in market sentiment or a confirmation that the divergence is invalidated.

Conclusion

XRP has shown resilience, bouncing back from key support levels and targeting $2.50. The short-term outlook remains cautiously optimistic, with support at $2.25–$2.30 and resistance looming at $2.65–$2.80. However, the presence of bearish divergence on the 3-day chart suggests that XRP might face challenges in maintaining upward momentum. Traders should keep a close eye on these critical price levels, as any breakdown below support or a failure to break resistance could indicate a shift in market sentiment.

As XRP navigates these critical zones, it will be important to monitor the broader market trends and investor sentiment to assess whether the bullish outlook can be sustained or whether the token will face further consolidation or decline.

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