- XRP has pulled back to the crucial $3 support after reaching above $3.6, with sellers currently leading but their strength fading.
- If the $3 level holds, buyers may push the price higher; otherwise, further declines are possible.
Ripple’s XRP has recently seen a turbulent week, with price action hovering near a critical $3 support level. After a strong rally that pushed XRP above $3.6, sellers have stepped in, triggering a pullback. This article breaks down the current situation and what traders can expect in the coming days.
XRP Pullback and Support Levels
XRP surged to a fresh high above $3.6 but quickly faced selling pressure that brought the price back down to around $3. This $3 mark is now a key support level, acting as a line in the sand for buyers. So far, buyers have managed to defend this support, halting the downtrend temporarily. However, the resilience of this support will be tested again soon as selling interest remains.
XRP Sellers Currently in Control
Technical indicators suggest that sellers have the upper hand, especially on the daily chart. The volume profile shows that recent trading activity has favored bears, with higher sell volume pushing prices lower. The encouraging sign is that sell volume has been gradually decreasing from its peak near $3.6, implying some fading bearish enthusiasm.
Bearish MACD Signals Continue
A significant bearish signal appeared last Friday when the Moving Average Convergence Divergence (MACD) indicator crossed downward, accelerating the pullback. Since then, XRP’s downward trend has persisted without clear signs of reversal. This indicator suggests that XRP might retest the $3 support level soon.
What Could Happen Next?
If the $3 support holds again on the next test, buyers might regain confidence and push XRP back above $3.6, potentially challenging the next resistance around $4. However, if this support fails, the cryptocurrency could face further declines, leading to a more extended correction phase.
XRP’s price is at a critical juncture this week. A strong defense of the $3 support could signal the start of another upward move, but bearish pressure remains evident. Traders should watch closely for how XRP behaves around this level to gauge its next direction.
Key Price Levels to Watch:
- Support: $3
- Resistance: $3.6 and $4
XRP’s near-term trend depends heavily on whether buyers can hold the $3 support against sellers who currently dominate the market.
ALSO READ:XRP Below $5: Value Opportunity or Overpriced Gamble?
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