Following a period of price volatility, a market analyst has identified a critical price level XRP needs to surpass to maintain its upward momentum. The cryptocurrency experienced a sharp fluctuation, initially gaining over 5% before retracing most of its gains by the end of the day.
On Tuesday, XRP exhibited significant price swings, surging to an intraday high of $3.2137 before facing strong resistance and declining. This movement led to the liquidation of approximately $11 million in trading positions over the past 48 hours, with long positions accounting for $7.40 million of those losses.
The market reaction has sparked concerns among traders, particularly due to the sudden price reversal that wiped out much of the initial gains. Amid this uncertainty, a well-known analyst has outlined a key resistance level that XRP must reclaim to counter bearish sentiment and regain bullish momentum.
Analyst Highlights Crucial Resistance Level
Crypto market analyst Nebraskangooner recently analyzed XRP’s price action and emphasized that its rejection at the 1.337 Fibonacci extension level ($3.221) was a critical turning point. The analyst described this level as a potential “bull trap,” where the price briefly surged before experiencing a strong pullback.
The digital asset must break above this resistance level to continue its upward trajectory . Nebraskangooner noted that if the cryptocurrency fails to reclaim this price point, it could face extended consolidation or further downward pressure. However, a decisive move above this resistance could pave the way for more gains.
If bearish momentum persists, the analyst warned that the token might decline further, potentially dropping as low as $1.9622, as indicated in an accompanying price chart. This highlights the importance of the upcoming price movements in determining the asset’s short-term direction.
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Support Level Holds Strong
Despite recent fluctuations, the token has held firm near the $3.00 level, a price zone where large holders, commonly called whales, have been actively accumulating.
Market analyst Egrag Crypto has pointed out that every time XRP dips below $3, there has been significant buying activity, reinforcing the belief that this level is a critical demand zone. If the asset remains above this support, it may provide a foundation for further upward movements.
Current Market Position
As of report time, the asset has shown signs of recovery, posting a 2.36% increase from its recent lows. The cryptocurrency trades at $3.1025, with a total market capitalization of $179 billion.
While the market remains uncertain, analysts emphasize that reclaiming the $3.221 resistance level will be crucial for XRP’s continued bullish momentum. If the asset manages to break through, traders could see further price appreciation, while failure to do so may lead to a prolonged period of consolidation or potential downside movement.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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