XRP Price Action Hinges on Breakout Above Critical Resistance

XRP has been trading in a narrow range, leaving both bulls and bears waiting for confirmation. The token's price action is critical as it approaches the $1.09 support level, which has helped prevent further downside during recent pullbacks.

A daily close above $1.12 would strengthen the bullish case and potentially pave the way for a move toward $1.16. On the other hand, if bulls fail to hold the $1.09 support, selling pressure could increase, extending the current correction.

The Relative Strength Index (RSI) currently stands at 49.43, indicating that buying and selling pressure are relatively balanced. The higher-timeframe picture shows XRP in oversold territory on the weekly RSI, but the asset remains below its long-term EMAs, suggesting that the broader trend has not yet shifted in favor of buyers.

While institutional developments have become increasingly important for XRP, including growing interest in XRP-focused exchange-traded funds (ETFs), sustained demand can improve market sentiment over time. However, reduced exchange activity alone is unlikely to produce a sustained breakout without stronger buying interest.