XRP’s $3 Support May Trigger a New Uptrend
As XRP hovers near the critical $3 support level, analysts anticipate a potential rally that could elevate the cryptocurrency to new heights.
Ripple (XRP) is starting the week with a significant technical setup as it tests the $3 Fibonacci support level. Analysts believe this could be the pivotal zone for the crypto asset’s next major movement. XRP has remained stable around this region for several days, showing signs of momentum buildup.
This period of consolidation may be an encouraging indicator, often signaling a breakout when support holds firmly.
Focus on $3
Based on insights from CasiTrades, XRP’s ability to maintain its positioning around $3 indicates robust buying pressure, suggesting this level may serve as a springboard for an upcoming rally. The analyst mentioned that if this support holds, XRP could enter a “Wave 3” upward move, a phase characterized by sharp and extensive growth in Elliott Wave theory.
Projected resistance levels lie around $4 and $4.50, with future targets contingent on the unfolding of subwaves in upcoming sessions. This timeframe is seen as crucial for the token, where any breakdown could hint at weakness in the current trend. CasiTrades added,> “This is a critical support test here for XRP. The market is testing strength while forming clear structure. All eyes on how it behaves at this $3 support!”
In addition to this technical perspective, Santiment’s recent data indicates that the crypto asset is currently facing its highest retail fear and uncertainty levels since the tariffs announced by Trump six months ago. With more bearish comments than bullish ones over the past three days, the crypto analytics platform interprets this sentiment disparity as a potential contrarian buy signal.
Ripple’s DeFi Growth Accelerates
Reflecting the general positive sentiment for the token, Sentora’s on-chain data has shown significant activity surge within the Flare ecosystem, which is intricately connected to XRP’s growing utility. Following the launch of FAssets in September, the DeFi integration network Flare has seen an approximately 28% rise in total value locked (TVL), primarily driven by XRP bridging into the network.
Sentora noted that FXRP caps, which restrict XRP’s usage on Flare, have consistently been hit in quick succession, indicating a growing demand for XRP-based DeFi applications.
