Cryptocurrency analyst Steph is advising XRP investors to pay close attention to a key price level. Steph suggests that a long-term barrier is preventing the altcoin from reaching higher values. This resistance level is crucial as XRP aims for potential growth.
XRP’s Challenge: Overcoming the $3.6 Hurdle
In a social media post, Steph presented an analysis of XRP’s monthly price history going back to the 2020 bull market. The analysis highlights a rising trendline where XRP has twice encountered selling pressure around the $3.6 mark. The first instance was in January, when the altcoin peaked for the year.
Related Reading
The second rejection occurred recently as XRP rallied towards this same $3.6 resistance, achieving a new high within the current range. Steph emphasizes that XRP needs to successfully break through this multi-year trendline. Failure to transform this resistance into support could trigger a sustained period of price decline.
Conversely, if XRP does manage to surpass this resistance, Steph anticipates a significant upward surge, potentially pushing the price into the double-digit range. The analyst expresses optimism about XRP breaking through, citing other bullish indicators that support continued positive momentum.
Steph’s near-term outlook includes a possible rally to $4.42. He points to a double bottom pattern on the 4-day chart that remains active. Even with the current market downturn affecting the broader cryptocurrency landscape, XRP could maintain its upward trajectory.
However, Steph cautions that if the broader crypto market’s negative trend persists, the $3 support level becomes crucial. XRP must hold above this level to maintain its positive structure. A drop to this support might attract significant buying activity.
XRP Retests $3: What’s Next?
Another crypto analyst, CasiTrades, shared in a social media update that XRP was unable to sustain gains above the $3.21 resistance and is now retesting the $3 support. CasiTrades suggests that XRP may have completed a subwave 2 in a new trend, achieving a deep retracement. If the new low around $3 acts as support, a powerful upward movement could begin.
Related Reading
CasiTrades forecasts that XRP could achieve new highs if trading volume increases and the price moves back above the $3.21 resistance level. The first target of this “wave 3” sits near $3.82, the 2.618 Fibonacci extension level. The accompanying chart indicates a potential rise to $3.8 during this next rally.
Currently, XRP is trading around $3.16, showing a gain of over 2% in the last 24 hours, according to market data.
Featured image from Getty Images, chart from Tradingview.com