The price of XRP could potentially skyrocket to unprecedented levels if it manages to shatter the $3 resistance level. The increased futures open interest emphasizes the potential for an upward trend for XRP. However, this Tuesday saw a 7.6% drop in XRPUSD price, falling to an intraday low of $2.80 from its five-month high of over $3 on Monday.
Experts indicate that the crucial resistance level of $3 must be breached to pave the way for record highs. The XRP price needs to successfully turn this $3 resistance into a support level. The recent 33% rally for XRP between July 8 and July 18 was stalled by the $3 resistance. To avert a deeper correction, bulls must now surmount this resistance.
Historically, a rejection from $3 has always anticipated a significant downturn in XRP price. For instance, the previous encounter with the $3 resistance in March led to a substantial 46% price decrease, hitting a multi-month low of $1.61 on April 7.
According to crypto analyst CasiTrades, if XRP breaches the $3 mark, the next destination could be all-time highs. This level matches with the macro 0.118 Fibonacci retracement from $3.40. Thus, reclaiming it would be another strong indication that Wave 3 is underway and accelerating.
CasiTrades predicts that a breakout above $3, followed by a swift retest confirming it as new support, would likely result in an immediate continuation to $3.40 and beyond. He emphasized that the rapidity of this potential rise might come as a surprise once $3.40 is broken, given the lack of significant resistance thereafter.
The Binance XRPUSDT liquidation heatmap unveils key liquidity zones that may experience large liquidation events. These levels often serve as magnets, influencing the price direction. A high concentration of liquidations can be seen above $3.04. If this level is breached, it could trigger a liquidation squeeze, compelling short sellers to close positions and pushing the price towards $3.14.
The recent surge in XRP price was accompanied by an increase in leveraged positions. The aggregate open interest (OI) has reached $8.11 billion, a 121% increase since June 23. Regardless of the heightened risk of liquidations in case of a deeper XRP price correction, derivatives data suggests further upside potential.
Note: This article does not provide investment advice or recommendations. Every investment and trading move involves risk. Readers should perform their own research before making a decision.
