XRP Poised for Potential $2 Retest Before Recovery, While Bitcoin Eyes $140,000 Mark

Key Insights:

• Despite prevailing negative sentiment in the 2025 market, both XRP and Bitcoin have demonstrated resilience.
• Both cryptocurrencies exhibit signs of diminishing upward momentum but could sustain rallies if their 200-day Exponential Moving Averages (EMAs) provide support.
• XRP’s immediate price target is $3.2, whereas Bitcoin has the potential to surge to $140,000 if historical patterns following specific technical signals are repeated.

XRP Analysis:

XRP, the digital asset underpinning the Ripple network, has primarily benefited from favorable legal developments. Its protracted legal battle with the U.S. Securities and Exchange Commission (SEC) saw a notable shift after the Trump administration assumed control of the agency, effectively pausing the SEC’s aggressive stance against the blockchain firm.

Currently, XRP has experienced a decline over the past four trading sessions, decisively breaching its 21-day EMA with relatively little resistance. This ease in breaking below a key short-term indicator suggests that sellers currently hold sway over the price action. Trading volumes have remained relatively stable in recent days, making the next significant support level a crucial point for predicting future price movements.

The 200-day EMA is a widely observed benchmark indicator used by market participants to gauge the long-term trend of an asset. XRP has previously found support at this moving average multiple times since its rally in November. However, it recently fell below this level, and at the time of writing, the price is approximately 7.2% above it.  

The prior breach of the 200-day EMA is a concerning signal, indicating that a substantial volume of buy orders that were positioned at that threshold have likely been filled. Consequently, if the price decisively breaks below the 200-day EMA, currently situated at $2, it would significantly increase the likelihood of a bearish outlook for XRP.

Analysis of XRP’s volume profile for the year thus far indicates that the $2 level represents the lower boundary of its value area – the price range where the highest trading volumes have occurred during this period.  

Conversely, if the price demonstrates a strong rebound from this area, it would reinforce our primary scenario for XRP, which anticipates a rally towards the $3.2 level in the coming weeks, contingent on a strong breakout above key EMAs.

Bitcoin Analysis:

Bitcoin has solidified its position as a form of “digital gold,” demonstrating positive performance despite the broader financial market turbulence experienced this year, largely attributed to President Trump’s assertive trade policies.  

Bitcoin’s recent price action following a bearish EMA breakdown exhibits characteristics of a bear trap, which is often considered a strong buy signal for traders. Such market maneuvers typically trigger both a short squeeze, as those betting against the price are forced to cover their positions, and Fear Of Missing Out (FOMO) among buyers who rush in before the price potentially rallies significantly higher.

Following sessions of high trading volume, the 21-day EMA has now moved further away from the 200-day EMA, potentially setting the stage for bullish momentum to carry the price towards its most recent all-time high.

However, momentum indicators are showing some signs of weakening. The Relative Strength Index (RSI) has entered overbought territory, while the Moving Average Convergence Divergence (MACD) histogram has been trending downwards for over a week.

Should the price retrace at this juncture, it could present an opportunity for late buyers to enter the market near the $90,000 support level. As long as the 200-day EMA holds as support, Bitcoin’s overall outlook remains bullish.

Furthermore, historical analysis suggests that Bitcoin’s price could potentially climb beyond its recent all-time highs to the $140,000 level. This projection is based on the performance observed the previous two times a golden cross – a bullish technical signal occurring when the shorter-term EMA crosses above the longer-term EMA – appeared between these two key moving averages.