$XRP the native token of Ripple, has once again captured market attention by challenging the psychological resistance of $3. This level not only represents a technical milestone but also an emotional benchmark for thousands of investors who see it as a sign of strength or weakness in the trend. Media interest, large wallet movements, the regulatory landscape, and correlation with the general sentiment of the crypto market have placed XRP back at the center of debate.
The question dominating traders and investors today is clear: will it be able to stay above this level or will we see a correction?
In this article, we analyze the forces behind its recent movement, the risks it faces, and what it could mean for those considering entering (or exiting) XRP.
Recent factors driving XRP
Crypto Fear and Greed Index. Source: CoinMarketCap
Increased trading volume: Recently, XRP experienced a spike in volume accompanied by slight price increases, a sign of renewed interest from market participants.
Sales from large wallets: According to reports, some institutional holders or whales have reduced positions, which generated temporary bearish pressure.
General market sentiment: The optimistic tone of Bitcoin and Ethereum has spread to the rest of the market, including XRP, reinforcing the narrative of bullish continuity in the short term.
Regulatory context: The evolution of Ripple's legal cases against regulatory entities remains a determining factor. Each favorable advance boosts market confidence and tends to reflect in the price.
Technological advancements and adoption: Ripple continues to expand its partnerships in cross-border payment solutions, reinforcing the narrative of real utility of XRP as a liquidity token.
Possible scenarios for XRP
XRPUSDT 1D, EMA 20, 50 + Vol + RSI. Source: TradingView
Scenario 1: Consolidation above $3
If XRP manages to turn resistance into support, we could see a sustained rally towards $3.5 and even $4 in the coming weeks. On the technical front, indicators like the neutral RSI and the 20 and 50-day moving averages aligned upwards would reinforce this hypothesis. Factors such as increased adoption in payments and positive regulatory news would act as catalysts.
XRPUSDT 1D, Vol + RSI + MACD. Source: TradingView
Scenario 2: Rejection at $3 and correction
The selling pressure from whales and short-term traders could lead to a pullback towards $2.5. From a technical standpoint, an overbought RSI or a bearish divergence in the MACD could anticipate such a correction. Technically, this would be a key support level to assess the real strength of the trend.
XRPUSDT 1D, EMA 20, 50 + Vol + ADX. Source: TradingView
Scenario 3: Lateral movement
In a scenario of prolonged consolidation, XRP could oscillate between $2.7 and $3.2 while the market awaits stronger catalysts. A weak ADX or lack of increasing volume would support the narrative of lateral range until a macro or market event breaks the inertia.
Total number of XRP holders. Source: Santiment
Is it a good time to buy XRP?
The answer depends on the investment horizon:
Short-term investors: They should be cautious; buying at a psychological resistance like $3 carries a high risk of correction.
Long-term investors: If one believes in the potential of XRP as a liquidity token for cross-border payments, prices near $3 could still be considered reasonable against more ambitious projections.
The key is to apply risk management: do not overexpose and use tools like stop-loss to mitigate abrupt declines.
Check the updated price of XRP and follow its movements in real-time here.
The $3 level in XRP is not just a psychological figure: it is a battleground between bulls and bears. Although optimism remains, volatility is still high. Ultimately, the decision to buy now will depend on your risk tolerance and investment horizon.
Tell me!
Now that we have explored the different paths that XRP can take around $3, I am interested in your view. Do you see this level as a springboard to new highs, a risk area, or simply a pause in the trend?
Share your opinion in the comments: let's build together the strategy for this alt-season and learn from the different perspectives of the community.
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