Recent market trends suggest that XRP, the popular cryptocurrency, faces renewed pressure after repeated attempts to break through the $3 mark have been met with resistance. Despite brief surges above this psychological threshold, XRP has encountered consistent rejections, indicating a potential corrective phase for its price. Traders are closely watching technical indicators, including fractal patterns, which may indicate further decline in the XRP price amidst heightened market volatility and liquidity concerns within the broader cryptocurrency sector.
XRP has consistently attempted to surpass $3 since November 2024, but recent attempts have been thwarted. Technical analysis suggests a potential 15% correction could push prices towards $2.60 if key support levels are breached. A significant $500 million long squeeze could also accelerate this decline.
Market liquidity clusters highlight strong resistance at the $3.18-$3.40 level, while substantial liquidation levels sit between $2.73 and $2.89. This suggests that XRP’s price is likely to face further downward pressure if it breaks below these critical support levels.
Despite multiple bullish pushes, XRP has struggled to maintain gains above the $3 threshold. On Saturday, for example, the token’s price dipped below this key support level, aligning with its 200-period four-hour exponential moving average (EMA). This recurring inability to hold above this level suggests potential weakness ahead and prompts investors to anticipate further declines.
Technical analysis points to a bearish fractal pattern resembling those witnessed earlier this year. If these patterns continue, XRP could see a 15% correction down to approximately $2.60.
Currently, XRP is consolidating within a bearish setup, as evidenced by the relative strength index (RSI) correcting from overbought levels above 70. With further decline possible, the RSI may reach oversold conditions below 30, posing increased risk of further downside if selling pressure intensifies.
The current trading zone for XRP spans two major liquidity clusters. Notably, significant long liquidation levels are concentrated in the area just above $3. These levels could trigger a short-term rally if prices rise again.
Furthermore, over $500 million worth of liquidity sits between $2.73 and $2.89. A decisive move below $3 could trigger a cascading effect across these long positions, potentially pushing prices further down towards these support levels. Alternatively, maintaining above $3 could lead to a short-term bounce toward $3.20-$3.40 for traders seeking to capitalize on the volatility in the crypto market.