XRP is fluctuating near the $3 mark but has not confirmed a solid recovery.
The price of XRP shows signs of increasing again after the recent drop, but warnings from experienced traders indicate that this may just be a preparation step for larger volatility rather than a sustainable recovery trend.
MAIN CONTENT
XRP is facing strong resistance near the $3 resistance area, within a narrow range of $2.96–3.
Strong support at $2.915 helps prevent the price from dropping further.
The RSI shows a bullish divergence, indicating reduced selling pressure and the possibility of a bounce towards the $3.41 mark.
Is XRP struggling as it approaches the $3 resistance level?
According to veteran trader CasiTrades, XRP is still trapped in a descending triangle pattern and is accumulating just below the $3 level, which coincides with the 0.382 Fibonacci retracement level. This area has acted as a 'price ceiling' for almost the last 20 hours.
Despite many attempts, buyers have not been able to break through this level. Conversely, the strong support at $2.915 corresponding to the 0.5 Fibonacci level is still being actively defended by buyers. Currently, XRP is trading within a narrow range from $2.96 to $3, setting the stage for a potential large breakout in the near future.
Can XRP aim for a price of $3.41?
CasiTrades believes the market structure of XRP has not been broken, indicating that the overall trend still exists. If the price holds above $2.96, this will be the first sign of the return of buying strength.
Next, the potential resistance levels to watch are $3.21 and $3.41, especially if the upward momentum is strengthened. The RSI indicator on the small timeframe also signals a bullish divergence, indicating that selling pressure is weakening and buyers may prepare for a strong price increase.
XRP could quickly reach $3.41 if buying pressure is maintained after surpassing $2.96. This is a positive signal in terms of price structure.
— CasiTrades, veteran cryptocurrency trader of 2024
CasiTrades, Twitter, June 2024
Currently, XRP is trading around the nearly $3 level, up about 1.8% in the past 24 hours, with a market capitalization of $178 billion.
What technical factors are affecting XRP's price movement?
The descending triangle pattern along with pressure at the 0.382 Fibonacci resistance level creates strong resistance. Support at the 0.5 Fibonacci level helps limit deep declines, increasing stability within the price range.
The RSI divergence in the short term is the first sign of weakening selling pressure and potential recovery. This feature often appears before breakouts in the cryptocurrency market.
What has the recent price volatility of XRP been like?
XRP has experienced a strong correction but has had some slight recoveries around the $3 mark. Technical analysis and the influence of Fibonacci levels indicate that this price area is crucial for the next trend.
Increasing trading volume along with the sellers' failed attempts at the $3 area reflects growing buying pressure, creating conditions for a potential recovery.
What should investors pay attention to when monitoring XRP at this moment?
First, it is necessary to observe fluctuations around the $2.96–3 level to determine the next price direction. Breaking or holding the important Fibonacci levels will indicate the sustainability of the trend.
Also, pay attention to the RSI indicator and divergence signals to assess market momentum, while monitoring the next resistances at $3.21 and $3.41 to make reasonable investment decisions.
Frequently Asked Questions
Will XRP have a sustainable recovery after the recent price increase?
Based on the technical analysis of experienced traders, XRP has not yet confirmed a solid recovery while still facing significant pressure around the $3 area.
What is the important resistance level for XRP?
The $3 area is regarded as the main resistance level, followed by levels $3.21 and $3.41 if the price can overcome the current control.
What does the RSI indicator mean for XRP's price?
The RSI divergence on the small timeframe signals a decrease in selling pressure and the possibility of a stronger bounce in the short term.
Why is the support level at $2.915 important?
This is the 0.5 Fibonacci retracement level, closely defended by investors to prevent a deep price drop, increasing stability for XRP.
How to track XRP's breakout signals?
Pay attention to price fluctuations around $2.96; if it breaks and maintains above this level along with positive RSI indications, a breakout may be expected.
Source: https://tintucbitcoin.com/token-co-vuot-moc-3-usd/
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