Current Market Consolidation
XRP is presently navigating a consolidation phase, positioned around $2.6 after an unsuccessful attempt to surpass the significant $3 resistance level. In recent days, the cryptocurrency experienced a robust rally, climbing to a peak of $2.9. However, it encountered a setback at $3, resulting in a 7.91% decline. Subsequently, XRP has stabilized within a tight range between $2.4 and $2.6. This situation has left traders contemplating whether XRP can breach the $3 threshold or if it will continue to consolidate in the near term.
Market Dynamics: Sell Walls and Resistance
Market analyst Dom has provided insights into the critical sell and buy walls in XRP’s order books, offering a glimpse into potential price actions in the coming days. One of the primary factors impeding XRP’s progress beyond $3 is the presence of substantial sell orders on major exchanges such as Binance and Coinbase. Specifically, Binance holds 34 million XRP in sell orders between $2.8 and $3.5, while Coinbase contributes an additional 16 million. Combined, these orders create a formidable barrier of 50 million XRP, indicating strong resistance at the $3 mark. This resistance suggests that a significant surge in demand is necessary for XRP to overcome this level.
Geopolitical Influences on XRP Trading
Another aspect affecting XRP’s price movement is the geopolitical climate, particularly the recent situation in South Korea. The implementation of martial law has temporarily halted trading activities, impacting XRP’s momentum. However, it is anticipated that once the geopolitical landscape stabilizes, XRP will regain its lost appeal and potentially resume its upward trajectory.
Support Levels and Potential Upside
On a more positive note, XRP finds robust support at lower price levels. Binance showcases 10 million XRP in buy walls between $1.9 and $2.3, complemented by Coinbase’s 4.3 million XRP in the same range. These buy walls collectively amount to 14.3 million XRP, highlighting substantial demand at these lower price points and suggesting that the downside risk might be constrained in the short term.
Expert Opinions and Future Prospects
According to Dom, XRP’s ongoing consolidation within the $2.4 to $2.6 range could potentially establish a foundation for future rallies, provided it maintains stability. Nevertheless, surpassing the $3 threshold will necessitate robust buying momentum and heightened market activity. Miles Deutscher has also expressed optimism, labeling XRP’s 10-year chart as one of the strongest in the cryptocurrency sector, characterized by dramatic spikes, steep declines, and prolonged periods of inactivity. He remains hopeful that this rally will replicate the success of 2021 rather than the downturn of 2018.
Echoing the bullish sentiment, Raoul Pal noted that XRP’s chart has historically surged following similar patterns, suggesting ample room for further growth. In summary, various experts have expressed confidence in XRP’s price resilience, asserting that it is unlikely to fall below $2 despite ongoing legal matters. However, its journey towards the $3 mark remains uncertain. Will XRP achieve the $3 milestone before January? Only time will reveal the answer.
