XRP, a prominent cryptocurrency, is currently experiencing a period of consolidation, trading around $2.6 following an unsuccessful attempt to surpass the significant $3 resistance level. In recent days, XRP witnessed a robust rally, reaching up to $2.9, but faced hurdles at the $3 mark, resulting in a 7.91% decline. Since then, the cryptocurrency has stabilized within a narrow range from $2.4 to $2.6, prompting traders to speculate whether XRP will manage to break through the $3 barrier or continue consolidating.
Massive Sell Walls Creating Resistance
Market analyst Dom highlights the challenges XRP faces in surpassing the $3 level, attributing the difficulty to substantial sell orders on major exchanges such as Binance and Coinbase. On Binance alone, there are 34 million XRP in sell orders between $2.8 and $3.5, with Coinbase contributing another 16 million. These combined 50 million XRP sell orders form a significant obstacle for price advancement, indicating widespread anticipation of resistance around the $3 threshold. Overcoming this barrier will likely necessitate a substantial increase in demand.
Impact of Political Factors
A recent political development in South Korea, where martial law has disrupted trading activities, is also influencing XRP’s price dynamics. Nevertheless, there is optimism that improvements in geopolitical conditions will enable XRP to regain its previous momentum and appeal.
Support at Lower Price Levels
Conversely, XRP benefits from robust support at lower price levels. Binance shows 10 million XRP in buy orders between $1.9 and $2.3, while Coinbase records 4.3 million XRP in the same range. This total of 14.3 million XRP in buy orders reflects strong demand at these lower price points, suggesting limited downside risk in the short term.
Expert Insights and Future Prospects
Dom posits that XRP’s current consolidation between $2.4 and $2.6 could lay the groundwork for potential future rallies, provided stability is maintained within this range. Achieving a breakthrough past $3 will require increased buying momentum and heightened market activity. Adding a positive perspective, Miles Deutscher characterizes XRP’s 10-year chart as one of the strongest in the cryptocurrency space, marked by significant spikes, steep declines, and extended periods of inactivity. He expresses hope that this rally will emulate the success seen in 2021 rather than the downturn of 2018.
Raoul Pal echoes this optimistic sentiment, noting that XRP has historically experienced significant surges following similar patterns, which suggests room for further growth. Despite ongoing legal challenges, many experts remain confident in XRP’s price resilience, anticipating that it will not fall below $2. However, the path to reaching the $3 mark remains uncertain.
Will XRP manage to hit $3 before January in such a scenario? This is a question that remains to be answered as market dynamics unfold.
