XRP’s price has experienced a volatile roller-coaster in recent days, testing both bulls and bears alike. Yesterday, the cryptocurrency saw a significant 5% surge, reaching an intraday high of $3.2137. This sharp price movement was initially ignited by positive sentiment around Ripple’s latest licensing progress. However, the gains quickly dissipated by the end of the trading day, with XRP closing lower after a sharp reversal.
This dramatic price action resulted in the liquidation of positions worth $11 million within 24 hours. Specifically, long positions totaling around $7.4 million were erased from the crypto market. While this may seem concerning for short-term traders, a prominent market analyst has identified the key price level that XRP must reclaim to stay on its upward trajectory.
Key Fibonacci Level and Price Reversal: Analyst’s Take
In his analysis, market expert Nebraskangooner highlighted the critical price point XRP needs to breach to overcome the bearish sentiment. He pointed out that XRP’s price had encountered rejection at the 1.337 Fibonacci extension level, situated at $3.221. This “bull trap fib,” as described by the analyst, was a pivotal moment that caused XRP to reverse course after attempting to break through the resistance.
According to Nebraskangooner, the altcoin is likely to continue its sideways price movement unless it can overcome the rejection point and successfully retest the Fibonacci level at $3.221. A sustained breach above this range would open the door for further gains and a continuation of the bullish trend. The failure to reclaim this level, however, could shift sentiment to the downside and pave the way for further price corrections.
XRP’s Key Support Zone: $3 as a Crucial Demand Wall
In the event of further price declines, the $3 support level is a vital zone for XRP. The cryptocurrency has consistently found support at this level, which has prevented deeper declines. Whale activity around this area has helped stabilize the price, as large investors continue to accumulate XRP at this support level.
Egrag Crypto, another analyst, also noted the importance of the $3 demand zone. He observed that whenever XRP briefly falls below $3, bulls have stepped in to buy, showing a continued interest in the token. This buying pressure has prevented further downturns, giving hope to the possibility that XRP could resume its bullish movement if the $3 support holds.
Potential Bearish Scenario: Further Declines if Key Levels Fail
While the support at $3 is a positive sign for XRP, a failure to hold this level could lead to a more significant downturn. If XRP is unable to maintain the $3 region, the price could face a more substantial drop. In such a case, the market could see a decline to lower support levels, possibly as low as $1.9622, which would be a worrying development for long-term holders.
In the current market climate, XRP’s price action is highly influenced by broader market trends and whale activity. As of now, the altcoin has shown a slight rebound, increasing by about 2% from the recent lows. Trading at $3.1025, XRP still holds a market cap of $179 billion, but the path ahead remains uncertain.
Conclusion: What’s Next for XRP?
For XRP to continue its upward momentum, reclaiming the $3.221 Fibonacci extension remains a crucial step. If successful, the cryptocurrency may target higher resistance levels, potentially surpassing its recent highs. However, failure to overcome the rejection point could see XRP testing lower levels, including the $3 support zone, and even lower.
The next few days will be critical for XRP as traders, investors, and whales alike keep a close eye on key price levels and market developments. With strong support at $3 and renewed efforts to break past resistance, XRP may have a chance to reclaim its bullish trend if market conditions remain favorable.
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