XRP Price Showing Surging Potential: Can It Reclaim The $3.221 Level?

• XRP hit $3.2137 before dropping, liquidating $11M in positions, with $7.40M in long positions wiped out in 24 hours.
• The analyst notes that XRP must reclaim $3.221, its 1.337 Fibonacci extension, to sustain bullish momentum and avoid further declines.
• If bearish momentum strengthens, XRP could drop to $1.9622, but strong support remains at $3 as whales continue accumulating.

Ripple (XRP) was on the rise during the recent trading period. It peaked at $3.2137 but then suffered a steep decline. This XRP price action led to $11 Million worth of liquidations, with the longs suffering a $7.40 Million loss.

It prompted traders to assess whether the XRP price can retest a critical technical level to maintain the bulls in control.

XRP Faces Key Resistance at $3.221

Market analyst Nebraskangooner pointed to $3.221 as a crucial resistance level for the XRP price. The analyst noted that this level is the 1.337 Fibonacci extension, where XRP was rejected before reversing.

A sharp drop followed this rejection. This underlined the significance of this price level for the next direction of the asset.

According to the analyst, the XRP crypto must break through the $3.221 level to attain a bullish trend. A break and hold above this level would open up further potential for higher prices and new record highs.

The XRP price may stay range-bound without a breakout or experience more selling pressure.

Bearish Momentum Could Push XRP to $1.9622

More so, the analysts emphasized that the XRP crypto might not bounce back to $3.221. If this happens, the asset will likely be in a bear market for longer.

Current price action showed that the bears have gained renewed energy to push prices down, which could mean more sell-offs. The above technical chart indicated that a resistance breakdown could send XRP to $1.9622.

In addition, the analyst estimated that if bearish sentiment continues, the selling pressure may intensify. Furthermore, this could put the pair to the test of lower levels of support.

Market players spectate if the XRP price can stay in the range and withstand further retracements. They are also monitoring if it will fall below $2.

$3 Support Zone Holds as Whales Accumulate

Nevertheless, market trends that were observed recently showed that the $3 mark is a pretty significant support level. Recent on-chain metrics showed that the whales have been buying XRP every time the price drops under this mark.

This level of accumulation indicated that there is keen buying interest at $3 to avoid a further downward slide. At the same time, another analyst, Egrag Crypto, noted a historical trend.

The analyst highlighted that each time the XRP price has come close to the $3 level, buyers have been able to come in and buy the dip. This demand wall has been an essential factor in capping downside risks.

Moving ahead, if it is sustained, it can offer a floor for a possible price rally. However, if selling pressure outweighs accumulation, a breakdown below $3 could accelerate the XRP price decline.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.