XRP is currently navigating a critical period as it tests the key support level of $2.70 for the third time in just six weeks. This repeated defense has drawn significant attention from traders and investors, especially given the cryptocurrency’s historical performance at this threshold. The asset’s price action suggests that a potential rally could be on the horizon, particularly if XRP can clear the crucial $2.825 resistance level.
Recent insights from crypto expert Ali Martinez have contributed to a more optimistic outlook for XRP. In a post on social media platform X, he indicated that XRP’s TD Sequential indicator has turned bullish, presenting a buy signal. Martinez emphasized the potential for a rebound, contingent upon the asset breaking through key resistance levels.
At the time of reporting, XRP was trading at approximately $2.80, marking an increase of 1.35% over the previous 24 hours. This slight uptick has spurred a notable increase in trading activity, as reflected in CoinMarketCap data, which indicated an 11% rise in XRP’s 24-hour trading volume compared to the previous day.
Technical analysis from AMBCrypto suggests that XRP is beginning to reverse its earlier downtrend. On the four-hour chart, XRP has successfully broken out of a descending trendline, setting the stage for a potential increase of up to 10%. However, resistance levels have emerged in the form of the 15-day and 21-day Exponential Moving Averages (EMAs).
For a rally to gain traction, XRP would need to break above these EMAs and secure a four-hour candle close above the $2.82 level. Should this occur, analysts suggest that XRP could see an increase of 10.50%, potentially reaching the $3.10 level in the near future.
Despite this bullish trend, there are mixed signals emerging in the market. Traders have been heavily betting on long positions, with on-chain analytics from CoinGlass revealing significant liquidation points: $2.70 on the downside and $2.825 on the upside. At present, long positions amount to $77 million, while short positions are considerably lower at $19.55 million, illustrating a prevailing bullish sentiment among traders.
However, caution is warranted as long-term holders and investors show signs of activity that could indicate potential selling pressure. In the past 24 hours, nearly $10 million worth of XRP has been transferred onto exchanges, which may suggest that holders are preparing to take profits following the recent price recovery. Compounding this concern, Binance’s exchange reserves for XRP increased dramatically by 61 million tokens, rising from 2.928 billion to 3.538 billion as of September 1st.
The current situation surrounding XRP underscores the volatility and potential of the crypto market, as traders and investors weigh the implications of these price movements and market signals.
