XRP News Today: XRP Faces 33% Surge Then Pullback At $3 Resistance

XRP is currently facing a critical resistance level at $3, a barrier that has historically influenced the token's short-term price movements. After a recent surge of 33% over ten days, XRP encountered significant selling pressure, leading to a pullback to around $2.80. This resistance level has been a significant hurdle in the past, often triggering sharp corrections when not decisively breached.

The $3 resistance level is particularly important as it aligns with the 0.118 Fibonacci retracement from the previous all-time high of $3.40. A sustained break above this level could validate a strong upward wave, potentially unlocking further bullish momentum. Market participants are closely monitoring whether XRP can flip this resistance into support, a move that would likely signal the start of a rapid and volatile wave toward $3.40 and beyond, according to crypto analyst CasiTrades.

Data from various sources reveal a notable uptick in leveraged positions and futures open interest for XRP, with aggregate open interest reaching significant levels. This surge indicates growing trader confidence but also elevates the risk of liquidation cascades if the price fails to hold above key levels. The liquidation heatmap highlights concentrated liquidity zones between $3.04 and $3.14, where significant stop-loss orders and margin calls could trigger rapid price movements. Traders should be alert to these zones as potential catalysts for either a sharp squeeze or a swift retracement, depending on market sentiment and order flow dynamics.

CasiTrades emphasizes that a confirmed breakout above $3, followed by a retest to establish it as support, could unleash a swift rally toward and beyond the previous all-time high of $3.40. This scenario aligns with Elliott Wave theory, where the current price action may represent the early stages of a powerful Wave 3, typically characterized by strong momentum and volatility. Such a breakout would likely surprise many market participants due to the limited resistance above $3.40, potentially resulting in an accelerated price run. However, investors should remain cautious and monitor volume and open interest closely to gauge the sustainability of this move.

Given the current technical setup and market indicators, traders are advised to watch for a decisive close above $3 with confirmation through retests to validate bullish momentum. They should also monitor liquidation heatmaps closely to anticipate potential squeeze points and avoid unexpected stops. The elevated open interest should be considered a double-edged sword—signaling opportunity but also increased risk of volatility. These factors combined suggest that XRP is at a critical inflection point, where strategic positioning and risk management will be essential for capitalizing on potential gains while mitigating downside risks.

XRP’s battle to overcome the $3 resistance level is a defining moment for its near-term price trajectory. With futures open interest climbing and liquidation zones clustered just above this threshold, the market is poised for heightened volatility. A successful breakout and retest of $3 could pave the way for rapid gains toward and beyond $3.40, marking a significant milestone in XRP’s price evolution. Traders and investors should stay vigilant, leveraging technical insights and market data to navigate this critical phase effectively.