XRP News Today: XRP Falls Below 3.40 Support Sparking Bearish Reversal Fears

XRP has dropped sharply following a failed attempt to maintain the $3.40 support level, sparking concerns about a possible bearish reversal. The rejection at $3.40 is seen as a key turning point, with crypto analyst Michaël van de Poppe describing it as "crucial" and warning that a breach could lead to a deeper correction [1]. The price has since moved lower, hovering around $3.14, but has not yet reached the $2.50 level, which is now in focus as a potential next target [1].

Technical analysis suggests that if XRP continues its downward trend, the $2.40–$2.60 range could serve as a potential entry zone for long-term buyers [1]. Below that, a broader support zone exists between $1.82 and $1.57, offering opportunities for investors with a longer time horizon. On the flip side, van de Poppe also noted that “all the liquidity has been taken” above $3.40, indicating that the downward move could be a sweep before a reversal [1].

Meanwhile, whale activity has shown signs of accumulation, with large holders purchasing 900 million XRP within 48 hours following the resolution of the Ripple Labs and SEC case [1]. Market analyst Ali Martinez linked this buying activity to increased trading volume, which rose to $8.77 billion in a single day, a 69% increase from the previous day [1]. Open interest also climbed, suggesting higher participation from traders and institutions. Martinez pointed to $3.27 as a key resistance level, stating that breaking it could lead to a move toward $3.60 [1].

On the 2-hour chart, XRP is currently trading within a downward channel, with $3.27 at the upper boundary. A break above this level is seen as a positive sign, potentially opening the path to $3.37, $3.51, and eventually $3.60. Conversely, a drop below $2.95 would invalidate the bullish scenario, according to analyst CrediBULL Crypto, who noted that as long as the $2.95–$3.11 range holds, there is potential to target range highs or even new all-time highs [1].

At the time of writing, XRP was trading at $3.14, down 3% in the past 24 hours but up 2% for the week. Short-term traders are closely watching for a breakout above $3.27, while others are awaiting a retest of the $2.40–$2.60 range for potential long entries. The market remains highly dependent on key technical levels and investor sentiment, with regulatory clarity continuing to play a role in shaping the broader market direction [1].

Sources:

[1] XRP Bear Trap? These Price Levels Are Must Watch

(U.Today, https://u.today/xrp-bear-trap-these-price-levels-are-must-watch)