XRP Struggles to Break Through $3 Resistance: What Lies Ahead?
XRP, one of the leading cryptocurrencies in the market, is currently facing a challenging phase as it hovers around $2.6. After a failed attempt to push past the critical $3 resistance level, XRP saw a strong rally in the past few days, reaching as high as $2.9 before stumbling and experiencing a 7.91% drop. The cryptocurrency has since stabilized in a narrow range between $2.4 and $2.6, leaving traders uncertain about its next move.
Market analyst Dom has shed light on the current situation by revealing key sell and buy walls in XRP’s order books. These walls hint at potential price action in the coming days, giving traders valuable insights into the market dynamics.
Massive Sell Walls Creating Resistance
According to Dom, XRP’s struggle to break past $3 is due to massive sell orders on major exchanges such as Binance and Coinbase. Binance alone has 34 million XRP in sell orders between $2.8 and $3.5, while Coinbase adds another 16 million. The combined total of 50 million XRP in sell orders creates a significant barrier for the price to climb higher, indicating strong resistance around the $3 mark.
Additionally, the recent political turmoil in South Korea, where trading activity has been halted due to martial law, has also impacted XRP’s price action. However, it is expected that once the geopolitical situation improves, XRP will regain its bullish momentum.
Support at Lower Price Levels
Despite the resistance at higher price levels, there is solid support for XRP at lower price levels. Binance shows 10 million XRP in buy walls between $1.9 and $2.3, while Coinbase displays 4.3 million XRP in the same range. The total of 14.3 million XRP in buy walls indicates strong demand at lower prices, suggesting that the downside risk may be limited in the short term.
Experts Weigh In
Dom suggests that XRP’s current consolidation between $2.4 and $2.6 could pave the way for future rallies if stability is maintained within this range. However, breaking past the $3 resistance level will require a significant surge in buying momentum and market activity.
Miles Deutscher has pointed out that XRP’s 10-year chart is one of the strongest in the crypto market, characterized by dramatic spikes, steep falls, and long periods of inactivity. He remains hopeful that the current rally will resemble the success of 2021 rather than the decline of 2018.
Raoul Pal has also expressed optimism about XRP’s potential for further growth, citing past patterns in the XRP chart that have led to significant surges.
In conclusion, while experts are confident in XRP’s price trajectory and believe that it may not drop below $2 despite legal challenges, the path to reaching $3 remains uncertain. Will XRP hit $3 before January amidst these circumstances? Only time will tell.