XRP Rally Resumes With Momentum Indicators Flashing Green

XRP is trading 2.96% higher to start the week at $2.10, snapping a multiday slump with signs of renewed momentum in the futures market. The token is down 2.24% over the past seven days and has lost 11.78% over the last month—but bullish sentiment is beginning to reemerge.

Long Bets Climb, RSI Signals Momentum Shift

Futures market data shows traders are beginning to lean long on XRP again, with the token's long/short ratio climbing to 1.07. That marks a meaningful shift in positioning, as more traders are now betting on upward price movement than on declines—a potential signal of confidence returning to the market.

Supporting the trend is XRP's relative strength index (RSI), which has risen to 50.77. The RSI measures momentum and overbought/oversold conditions, and a move above the neutral 50 level typically indicates growing demand. In this case, it suggests buying pressure is starting to outweigh selling, a necessary precursor to any meaningful breakout.

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If current momentum continues, XRP could retest the key $2.18 resistance level in the coming sessions. That price marks an important technical barrier; flipping it to support may open the door for a move to $2.29. If bulls fail to sustain the rally, however, XRP could drop back toward $2.03 or even $1.99.

Technical Compression Signals a Move Is Coming

Market watchers are also flagging an unusual technical compression on XRP's chart. According to CoinDesk, Bollinger bandwidth on XRP's 4-hour chart has narrowed to its lowest level since October 2024—a pattern that often precedes high-volatility moves. The last time this setup occurred, XRP staged a breakout rally.

Still, the "spring compression" setups can swing both ways. While a rally is possible, a downside move is also on the table, particularly with some macro uncertainty lingering. The last time bandwidth compressed this tightly was just before the FTX crash in 2022, CoinDesk noted.

Traders will be watching closely for a directional break above $2.18 or below $2.03 to confirm whether the setup resolves bullishly or bearishly.

Broader Market Momentum Lends Support

Bitcoin's surge above $87,000 on Monday helped boost sentiment across the crypto market. XRP, along with BNB and SOL, notched modest gains during the session as traders revisited the "digital gold" thesis amid renewed inflation fears and a weakening U.S. dollar.

Gold also hit a fresh all-time high above $3,380 per ounce. Treasury Secretary Scott Bessent downplayed concerns about a Treasury sell-off in a Bloomberg interview last Monday, but noted that the U.S. is exploring new leadership for the Federal Reserve and hinted that volatility could persist until markets fully absorb the shift in interest rate outlook.

If macro headwinds continue to ease and crypto momentum holds, XRP's bullish case may strengthen—particularly as traders pile into altcoins with high liquidity and ETF speculation tailwinds.

XRP's short-term setup is showing signs of life after a volatile month. Long positioning, RSI momentum and tight Bollinger bandwidth all point to a potential breakout—with $2.18 and $2.29 coming as the next upside targets. On the flip side, support at $2.03 and $1.99 remains key to maintaining structure if the rally falters.

With macro conditions still fluid and ETF speculation brewing in the background, XRP could be poised for a larger move—traders just need confirmation of the direction.

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