XRP (XRP) Price Analysis: Will the Recent Rally Resume After a Brief Consolidation Phase?

XRP's recent rally has come to a halt after achieving highs near $3, leaving the market wondering what happens next.

XRP's recent rally has paused after hitting highs of around $3, leaving traders guessing what's next. Amid the ongoing crypto market uncertainty, XRP seems to be consolidating, especially in its Bitcoin trading pair. So, could a breakout against BTC be brewing?

Over the last few weeks, XRP has been a standout performer, gaining momentum amid positive developments in the broader crypto market and bullish sentiment around the launch of the Ripple USD (RLUSD) stablecoin.

On Dec. 3, XRP rallied to highs of $2.90, while also hitting highs of $0.00003 in its Bitcoin pairing, a level last seen in May 2021.

But after this achievement, the rally seems to have entered a cooling-off period. The XRP/BTC trading pair, which measures XRP's relative strength to Bitcoin, has slowed and consolidated within a range, suggesting that the next move could be crucial.

Traders are keeping an eye on the 0.0000265 and 0.00003 BTC levels as key resistances for XRP. A breakout above these crucial levels might indicate the next leg of the rally.

While XRP's rally may have paused, the market is awaiting a clear direction on which way to trend next. Whether XRP breaks out or pulls back, its next moves could dictate its trajectory in the short term.

XRP/USD price analysis

At the time of writing, XRP was trading down 0.73% in the last 24 hours at a price of $2.29. XRP has been ranging after hitting highs of $2.90 on Dec. 3. The RSI around the midpoint shows a balance between supply and demand, suggesting that XRP is likely to continue ranging between the $1.90 and $2.90 levels over the next few days.

Recent price action has formed a symmetrical triangle pattern, which is typically considered a continuation pattern but can also act as a reversal pattern. If the price rallies and breaks out of the triangle, we could see a higher chance of a breakout above $2.91.

On the other hand, a breakout and close below the triangle may indicate that XRP has potentially seen its short-term peak. Such a move could see XRP drop towards the 50-day SMA at $1.73.