XRP is at a critical technical juncture, as shown in the provided chart and detailed in the recent analysis. The price has formed a descending triangle below major resistance, with key support levels anchoring its current structure. This period marks a significant decision point for the market, driven by price action around the $2.97–$3.00 resistance band and the $2.79 support.
Chart Structure and Current Levels
- The chart reveals a long-term ascending trend that peaked and has since entered a consolidation phase under a clear descending resistance line.
- Price is fluctuating around the $2.75 level, with the 200-day moving average acting as dynamic support around $2.65–$2.70.
- Immediate horizontal support at $2.79 has recently been retested and respected, aligning with the macro 0.5 Fibonacci retracement, reinforcing buyer interest at this level.
- Overhead, strong resistance is capped at $2.97–$3.00, as drawn on the chart, reinforced by both a downtrend line and multiple previous failed breakouts.
Key Resistance and Support
- Breaking and sustaining above $2.97–$3.00 is identified as technically critical. This area marks the 0.854 Fibonacci retracement of the previous major move and the base of Wave 1 in Elliott Wave theory.
- If bulls reclaim and hold this band, it would likely trigger a "Wave 3" impulse, validating a shift from correction to a renewed rally.
- Failure to do so opens the risk of retesting $2.79, with a deeper sell-off threatening a drop to $2.58—the 0.618 Fibonacci retracement zone, which is traditionally considered the last significant support in bullish corrections.
- The RSI (Relative Strength Index) should be monitored for signs of market exhaustion or divergence—momentum confirmation is key for any trend transition.
Market Scenarios
- Bullish: A clean breakout above $3.00, flipping it to support, would mark a decisive bullish reversal and likely start a new impulsive wave higher. This would confirm that buyers have regained control, and the correction phase is over.
- Bearish: A rejection at $2.97–$3.00 could send the price back to $2.79 support. Multiple retests of this area would weaken it, possibly leading to an accelerated descent toward $2.58, risking an even more significant correction if broad market momentum fades.
Moving Averages and Volume
- The chart's moving averages (such as the 20 and 200-day) are tightly clustered, showing indecision but also supporting the idea of critical support near current price levels.
- Volume so far suggests that while sell pressure is present, sharp down moves are being absorbed at the $2.79–$2.70 band, indicating strong accumulation at key support.
Conclusion
XRP is poised at a make-or-break point. Bulls must reclaim and convert $2.97–$3.00 into support to initiate a new upward trend. If this fails, $2.79 remains the last stronghold, with $2.58 as the next defense below. Technical signals from the RSI and moving averages should be watched closely for confirmation of exhaustion or a reversal. The coming sessions are critical: a breakout would ignite a substantial rally, while another rejection increases vulnerability to a correction.
DISCLAIMER
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve substantial risk and extreme volatility - never invest money you cannot afford to lose completely. The author may hold positions in the cryptocurrencies mentioned, which could bias the presented information. Always conduct your own research and consider consulting a qualified financial advisor before making any investment decisions.
About ajbcoinasity
Core Developer at Coinasity.com | Blockchain Researcher
Leading the tech behind Coinasity, this account shares insights from a core dev focused on secure, scalable blockchain systems. Passionate about infrastructure, privacy, and emerging altcoin ecosystems.
