XRP price is currently struggling to regain momentum and reach the crucial $3 level once again. Currently trading at $2.83, XRP has experienced a slight decline of over 1% in the last 24 hours. Along with XRP, most of the top ten cryptocurrencies have also dipped into the red zone, with Bitcoin and Ethereum both down by more than 2%. Investors are closely watching to see what lies ahead for XRP price.
Support Holding, But Momentum Weak
The $2.74 support level has proven to be a crucial area for XRP in recent weeks, with buyers successfully defending this level. However, despite this support holding firm, the momentum for XRP remains weak. The cryptocurrency continues to show a pattern of lower highs and lower lows, indicating caution in the market. If XRP fails to hold above the $2.74 support level, the focus may shift to the next major support zones between $2.46 and $2.21, which could potentially lead to further losses.
Resistance Levels in Focus
On the upside, XRP is facing strong resistance levels. The first significant barrier is at $3.10, and a breakout above this level could signal a potential recovery. Beyond that, the $3.40 level is a critical test for XRP. Breaking through this resistance zone could pave the way for a move towards $3.80 and eventually the $4.40 to $5.00 range. However, the recent bounce from the early September low has not shown enough strength to confirm a sustainable turnaround, indicating that bulls may struggle to overcome these obstacles.
Market Structure Still Unclear
The overall chart structure suggests that XRP is still caught in a correction phase that began in July. Analysts believe that without a more significant push above resistance levels, the risk of revisiting lower price levels remains high. As long as XRP manages to stay above the $2.74 support level, the odds favor those anticipating a rebound. However, if this support level is breached, the bearish scenario could come back into play.
In conclusion, XRP’s price action is currently at a critical juncture, with both support and resistance levels playing key roles in determining its future trajectory. Traders and investors are closely monitoring these levels to gauge the potential direction of XRP’s price movement in the coming days.