XRP Volume Surges as Traders Eye $3 Resistance
Technical analysts are pointing to $3.17 as a critical breakout level that might trigger a rally towards $5.00+. However, some bearish analysts caution that if support fails, prices could dip to $2.65.
Key Highlights:
- XRP rebounded 6% to $2.93 following significant trading volume and strategic buying of support.
- The cryptocurrency faced downward pressure due to a downgrade in blockchain security and overall market liquidations.
- Traders are monitoring if XRP can break and sustain above $2.99, with $3.17 as the next breakout target.
Market Summary:
XRP experienced a 6% fluctuation within a volatile trading session, recovering from $2.82 to reach $2.93, driven by increased volume and active support buying despite heavy selling from larger holders. Overall, $360 million in liquidations were observed in the broader market.
News Background:
- XRP faces challenges from a blockchain security downgrade, raising concerns about potential flaws.
- Large holders have been selling during rallies, while others are defending critical support.
- The market has recently seen significant liquidations, affecting sentiment across both major and memecoins.
Price Action Summary:
- XRP fluctuated 5.69% over August 20–21, with a price range from $2.82 to $2.99.
- The token saw significant sell-offs during peak trading hours before recovering back up to $2.93.
- Trading volume peaked at 155 million, nearly three times the standard daily figure.
- Bulls concentrated their buying efforts at $2.82, helping to produce a late-session rally.
Technical Analysis:
- Support Level: Strong buying interest at $2.82 confirms this floor with increased trading activity.
- Resistance Level: Sellers are asserting control at $2.99, forming a defined ceiling.
- Volume Growth: A turnover of 155 million indicates high institutional buying interest.
- Price Pattern: The trend has formed a V-shaped recovery from $2.82 to $2.93, showing accumulation.
- Morning Activity: XRP extended gains slightly by 0.34%, with hourly volumes above normal levels.
- Momentum Outlook: Continuing demand at $2.92-$2.93 may suggest forthcoming breakout potential.
Trader Focus:
- The possibility of XRP maintaining its position above $2.99 to enable movement towards $3.17.
- Observing whale activity patterns for signs of selling or buying around the $3.00 mark.
- The impact of broader market trends on liquidity and institutional investment decisions.
- The crucial test for the $2.82 support level for future price stability.
