Key takeaways:
XRP price must break the $3 resistance level to clear a path to new all-time highs.
Increasing futures open interest supports further upside potential for XRP.
XRP
$3.02
price is down by 7.6% on Tuesday to an intraday low of $2.80 from a five-month high above $3 on Monday. Analysts say the key resistance level at $3 must be broken to clear the path to new all-time highs.
XRP price must flip $3 into support
XRP’s 33% rally between July 8 and Tuesday was halted by resistance at $3. Bulls must now overcome the resistance at $3 to avoid a deeper correction.
Historically, rejection from $3 has always preceded a significant decline in XRP price. For example, the last time the XRP/USD pair ran into resistance at $3 in March was followed by a 46% drop in price to a multimonth low of $1.61 reached on April 7.
If XRP breaks $3, the next stop could be new all-time highs, said crypto analyst CasiTrades in a Tuesday post on X.
According to the analyst, this level aligns with the macro 0.118 Fibonacci retracement from $3.40 and “reclaiming it would be another massive signal that Wave 3 is alive and accelerating.”
CasiTrades said a breakout above $3, followed by a quick retest that confirms it as a new support, would see immediate continuation to $3.40 and beyond.
“Once $3.40 (ATH) breaks, it will likely shock people how quickly this runs. There’s not much in the way after that. Expect it to be incredibly fast and volatile! ”
As Cointelegraph reported, XRP price must break $3 to clear the path toward $3.40 and higher. XRP liquidation heatmap hints at $3.04-$3.14
The Binance XRP/USDT liquidation heatmap reveals key liquidity zones where large liquidation events may occur. These levels often act as magnets, influencing price direction based on the amount of liquidity at a given level.
A high concentration of liquidations is visible above $3.04, with the yellow area indicating a cluster of leveraged positions, suggesting that it’s a significant resistance level.
If the $3.04 level is broken, it could spark a liquidation squeeze, forcing short buyers to close positions and driving prices toward $3.14, the next major liquidity cluster.
The latest rise in XRP price was accompanied by an uptick in leveraged positions, with the aggregate open interest (OI) reaching $8.11 billion, up 121% since June 23. This is 3% below the peak of $8.33 billion reached on Jan. 19.
Despite the higher risk of liquidations in the event of a deeper XRP price correction, derivatives data points to further upside potential
