Home Altcoins News XRP Price Outlook: Key Levels to Watch for Bullish Momentum

XRP Price Outlook: Key Levels to Watch for Bullish Momentum

XRP Price

XRP’s price action has been a rollercoaster lately, with the asset showing impressive gains followed by sharp pullbacks. After surging over 5% to an intraday high of $3.2137 on the back of Ripple’s latest licensing developments, the altcoin struggled to maintain its bullish momentum, giving up most of the gains by the end of the day. This market volatility has left many traders uncertain about XRP’s ability to sustain its upward trend.

In just 24 hours, approximately $11 million worth of liquidations took place in the market, with long positions taking the hardest hit. The dramatic price movements have raised concerns about the future direction of XRP, but market analysts have identified a crucial price level that needs to be reclaimed for the cryptocurrency to continue its bullish path.

The Crucial Resistance Level for XRP’s Continuation

According to market analyst Nebraskangooner, the price reversal on Tuesday was driven by XRP being rejected at the 1.337 Fibonacci extension level at $3.221. This level has been referred to as a “bull trap fib,” as it marked the point at which the price surge lost momentum and caused a significant sell-off.

The analyst suggests that XRP will likely remain in a sideways pattern unless it reclaims this key resistance level. Should XRP manage to break above the $3.221 mark and establish support at this price, a new upward push could occur. However, without successfully retesting and surpassing this Fibonacci resistance, the altcoin could struggle to gain further ground, potentially leading to more downside action.

Immediate Support at the $3 Level

While the $3.221 resistance level remains a significant hurdle for XRP’s short-term prospects, the $3 level is equally important for its immediate price action. The $3 mark has held strong as support during recent price fluctuations, preventing XRP from falling further during market corrections. This level has been particularly important for long-term holders and whales who have been actively buying up XRP when the price dips near this point.

Egrag Crypto, another prominent analyst, highlighted the importance of this support zone. According to Egrag, every time XRP approaches the $3 area, whales step in to accumulate more tokens, preventing the price from moving too far into negative territory. This demand wall has helped maintain some stability, but if the price falls below $3, it could indicate bearish sentiment, which might lead to further declines.

What’s Next for XRP?

At the time of writing, XRP is trading at $3.1025, showing a slight rebound of around 2% after dipping lower in the previous day. The cryptocurrency’s market cap is currently valued at $179 billion, reflecting solid interest despite recent volatility.

If XRP manages to break through the $3.221 Fibonacci resistance level, the price could target higher levels in the $3.50-$3.60 range in the near future. On the other hand, if XRP fails to regain this critical level, the token could experience a significant correction, potentially testing the $2.95 support zone or even lower.

XRP’s future performance will be heavily influenced by broader market conditions, including movements in Bitcoin and Ripple-related news. Traders should monitor these external factors as they could have a profound impact on XRP’s price trajectory in the short term.

Ultimately, the key for XRP’s continued bullish trend lies in its ability to reclaim the $3.221 level and maintain support above $3. If these conditions are met, XRP could continue its march toward new price milestones. Otherwise, the price may face further downward pressure.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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