XRP extended its recovery with a clean push through $2.197 resistance, signaling renewed bullish momentum as institutional accumulation reappeared at key levels.

News Background

• Broader crypto sentiment improved as BlackRock reiterated support for real-world asset tokenization themes
• Firelight, a new DeFi protocol, allows XRP holders to stake tokens and earn rewards while providing onchain protection against hacks.
• Built by Sentora and backed by Flare Network, Firelight introduces a capital-efficient protection layer to enhance DeFi's resilience.
• The protocol uses Flare’s FAssets system to integrate XRP into DeFi, offering a new yield-earning opportunity for XRP holders.Technical Analysis
• The achievement allows FSRA-licensed firms to use RLUSD for regulated activities, expanding its presence in the Middle East.
• RLUSD's acceptance in ADGM highlights its role as a stablecoin with clear reserve rules, appealing to banks and payment firms in the region.

Technical Analysis

• XRP’s move above $2.197 confirms a clean break of the micro-range that contained price action for most of the prior session.
• Repeated defenses of the $2.17 channel floor illustrate demand absorption at lower levels. This activity occurred alongside elevated funding rates, which climbed more than 120% over the past 24 hours. While this reflects growing bullish conviction, it also signals rising leverage risk should price fail to follow through.
• The broader structure remains intact: an inside-day breakout setup, rising channel support from November lows, and a developing Power-of-3 progression that suggests accumulation, manipulation, and expansion. XRP currently sits in the transition zone between the second and third phases.

Price Action Summary

XRP traded between $2.19 and $2.20 for most of the session before a brief liquidity sweep drove price to $2.15 during the largest volume event of the day. Buyers immediately absorbed the move, pushing the token back above $2.17 and maintaining higher lows on every subsequent retest.

The breakout through $2.197 triggered a clean move to $2.206, supported by hourly volume rising from 450K to 553K. Price stabilized above $2.204 into the close while $2.22 emerged as the next resistance level to clear.

Intraday momentum remained constructive, though upside continuation now depends on maintaining structure above $2.204 and avoiding deeper tests of $2.17.

What Traders Should Know

• The $2.204 micro-support is now the immediate pivot — holding above it keeps the breakout active
• A break above $2.22 opens direct continuation toward the $2.33–$2.40 resistance band
• Rejection at $2.22 combined with rising funding rates increases the risk of a leverage flush
• Losing $2.17 would shift focus back to the broader $2.00 psychological level
• Volume confirmation remains key — sustained prints above 600K/hour would support another expansion leg