XRP has rebounded from the recent market correction and is attempting to confirm the $3.00 support level. However, one analyst stated that before bullish momentum persists, this cryptocurrency could face the risk of testing the local lows again.
XRP daily closing price trend is crucial.
XRP has reclaimed key support levels, and the cryptocurrency market is stabilizing after this week's slump. Over the past week, the altcoin has been trading sideways, hovering between $2.85 and $3.10.
The cryptocurrency has retested the local lows and has held the lower limit as support amid recent market volatility. Currently, the price has surged 7% from Monday's low to the $3.08 region, before falling back to the $3.00 mark.
On Wednesday, analyst Ali Martinez pointed out that XRP has broken the local resistance level near $3.10 for the third time, which could signal a new round of corrections similar to previous attempts at local lows.
If the altcoin fails to hold the current level as support and loses the mid-range area, its price could drop to $2.83, with the risk of breaking below the local range and deeper retracement.
Conversely, if bullish momentum continues and the cryptocurrency breaks through key resistance levels, its price could rebound to the highs of August, between $3.20 and $3.40.
Similarly, analyst Cryptoinsightuk noted that the daily closing price for XRP is positive and added that 'the RSI crossover is bullish, and we haven't seen any structural changes even during this pullback.'
Nevertheless, he stated that the cryptocurrency needs to sustain its momentum and continue to see increases in price and trading volume the following day. This market observer asserted that if the daily closing price breaks above the $3.14 region, it would lay the groundwork for a rebound to the $3.40 resistance level in the coming weeks.
Is a rebound like in 2017 coming soon?
After rising to a new historical high (ATH) of $3.65 in July, the altcoin has been consolidating within a bullish pennant, compressing between the resistance and support levels of this pattern.
Analyst GalaxyBTC also noted that XRP has been oscillating between two parallel levels, replaying its 2017 movements. Previously, this cryptocurrency hovered between prior historical highs and breakout levels, with the breakout level turning into support.
After a period of consolidation, the cryptocurrency broke out of this range and surged significantly to the historical high of 2018. This time, XRP turned the $1.70 region into support last November and has been consolidating between this level and previous historical highs for the past eight months, which may indicate that the upward trend is not over.
If history repeats itself, a massive breakout could occur once the altcoin breaks above the previous highest resistance level and turns it into support.
Additionally, the analyst highlighted a key level in the XRP to Bitcoin (BTC) trading pair, explaining that the $0.00003014 region has been a resistance level in the XRP/BTC chart for the past six years.
As the XRP/BTC pair continues to approach this resistance level, market observers believe that 'the timing is perfect, as the breakout will allow us to clearly identify the price against the dollar.'
As of the time of writing, XRP is trading at $3.02, up 3.3% for the week.
