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XRP has caught the attention of traders again after jumping 5% in the last 24 hours, reaching $3.05. The recent price movement suggests bullish momentum is returning, especially as the token tests a crucial resistance-turned-support zone around the $3 level. Many analysts are now watching closely to see if XRP can break through key resistance and move toward its next major target of $3.40.
Strong Rebound Above Key Support
As of July 17, XRP is trading in a tight range between $2.90 and $3.05. This price zone has historically acted as a barrier, and now it’s being tested again—this time as support. Holding above $3 is important for the bulls. A confirmed daily candle close above this level could validate a breakout scenario and open the door to higher gains.
The current rally appears to have flipped the previous resistance at $3 into a temporary support level. This kind of price behavior is often seen as a bullish sign, indicating that investors are gaining confidence and that sellers are losing control.
Key Levels to Watch: $3.18 and $3.40
If XRP maintains momentum above $3, analysts are eyeing the next major resistance at $3.18. This level represents a short-term hurdle. However, the more important target is $3.40, which is both a psychological barrier and the high reached in January 2025.
Notably, the $3.40 level also aligns with the 100% Fibonacci extension level, a key technical indicator used by traders to forecast potential breakout zones. If XRP clears $3.40 convincingly, it could pave the way for new all-time highs in the weeks ahead.
Bullish Technical Indicators Support Breakout Possibility
Technical indicators are increasingly pointing to bullish momentum. The Relative Strength Index (RSI), a popular momentum indicator, is moving higher and has not yet entered overbought territory. This suggests that XRP has more room to run before any cooling-off period.
Another positive signal comes from a potential “C-wave” formation, often part of an Elliott Wave pattern. If this pattern plays out, XRP could be in the early stages of a larger upward move. A break above recent RSI highs could also invalidate lingering bearish trends, giving bulls more confidence to push prices higher.
Risks Still Exist: Pullback to $2.80 Possible
Despite the strong signs, XRP is not entirely in the clear. If the token fails to stay above the $3 support, it could face a short-term pullback to $2.90 or even $2.80. This would likely be seen as a temporary setback, but it would delay any breakout attempts and possibly shake short-term investor sentiment.
Traders should also be cautious of false breakouts, where the price briefly moves above resistance but fails to hold and quickly reverses. For XRP, a strong and sustained move with high trading volume is essential for confirming a true breakout.
XRP Market Sentiment Remains Positive
Market sentiment around XRP has improved in recent weeks, fueled by increased adoption, ongoing legal clarity around Ripple, and interest from institutional investors. While there are no guarantees in crypto markets, these positive developments are giving bulls more reason to stay engaged.
Moreover, as Ripple continues to push for more use cases of XRP in cross-border payments and tokenization, investor confidence in XRP’s long-term utility remains strong. This underlying utility provides a fundamental case to support technical bullishness.
Conclusion: Watch the $3.40 Resistance Closely
XRP’s recent price action has been encouraging for bulls. A 5% gain and reclaiming the $3 level indicate growing momentum. The next major hurdle is $3.40—if XRP can break and hold above this point, a new rally could be in the making.
Until then, traders should watch price action closely, especially how XRP behaves around the $3 support zone. A solid breakout could put the token on a path toward setting new yearly highs, but a failure might result in a temporary dip.
As of now, XRP is holding steady around $3.05, and all eyes are on whether it can make the leap toward $3.40 in the coming days.
