- XRP’s price shows resilience after correction, with support at $2.75 and potential for a bullish trend recovery.
- A successful breakout above $3.21, according to analysts, could signal the end of the correction and pave the way for higher targets.
- The surge in XRP’s trading volume by 27.69% reflects rising market interest, adding strength to the bullish outlook.
The latest price dynamics of XRP suggest that its bullish setup may still be intact, even after a short-term correction. According to CasiTrades, the prospects of a positive trend in the cryptocurrency are not weak. XRP was put to the test on the $3.00 level, which is a .382 Fibonacci retracement.
In the beginning, XRP was making a good recovery when it had hit the $3.00 level, bouncing back to the high of the retracement (confirmation) at $3.31. However, when the price could not be able to break through with strong consistency, the rally faded.
Source: X
XRP Struggles to Break $3.31 Resistance:
That rejection at $3.31 created some concern that the rally was a component of a more significant corrective phase, maybe a B-wave of a more significant ABC format. The inability to break through the resistance was an indication that the bull trend was not totally in place.
Also Read: XRP Faces Critical Test at $3.00, Failure Could Trigger Drop to $2.56
Failing to hold above the figure of $3.00, the prices of XRP moved lower, testing the second significant level at the figure of $2.75, the 50 Fibonacci retracement. The level proved to be critical to the future of XRP, with any failure to reclaim it serving as a hint of additional declines.
Nevertheless, the price reacted positively to the level of $2.75 and retook the resistance of $3.00 soon afterwards. It is now critical that the price stay above $3.00 for the next few days to bolster the possibility of a bullish rebound.
Despite the recent downswing, analysts maintain that the current outlook is not bearish. The low is at $2.75, which is above the prior wave 1 high at $2.65, which maintains a bigger bullish trend.
The 15-minute and 4-hour charts are forming bullish divergences, suggesting that the move towards the $2.75 level may have disrupted the corrective move. Such indicators give hope that the price of XRP could soon change direction.
In the future, the next critical resistance point of XRP will be at the level of $3.21. A convincing reclaim and breakout above this area would be evidence that the correction is over and a new wave of movement upwards has started.
In such a case, the analysts are watching the next price movement between the range of $4.60 and $4.80. Besides, the psychological $4.00 mark remains to be another critical point of the coin, which strives to recover its bullish position.
Although the price movement at the levels below $3.00 compelled analysts to revise their projection, the configuration is still bullish, and Fibonacci levels were applied in the continuation of the price movement.
XRP Trading Volume Surges, Boosting Bullish Outlook
In addition to the technical factors, cryptocurrency’s market activity has experienced a significant increase. Coinglass reports that Ripple token trading volume climbed by an impressive 27.69% to $10.37 billion.
Source: Coinglass
In the meantime, the open interest rose 4.88%, to the level of $7.51 billion. The rise in activity in the market implies the rising interest in the asset, making the potential push towards bullishness even stronger.
The general structure of the token has not changed much even with the recent price fluctuations. The necessary correction has created an opportunity for recovery. An effective breakout above the resistance at about $3.21 would seal the label of correction and open up the gates to new highs. As XRP keeps on testing some crucial levels, traders are optimistic about a bullish reaction that can take the price to some important levels, including the $4.00 and $4.80 zones.
Also Read: Why XRP Boldly Chose Consensus Over Mining: Ripple CTO Exposes the Truth
