XRP Targets $3 Breakout Amid Bullish Sentiment

XRP, the cryptocurrency developed by Ripple Labs, is currently at a critical juncture that could potentially trigger a significant price breakout. According to recent technical analysis, XRP is on the verge of a potential price surge targeting the $3 mark. This assessment is based on the cryptocurrency's short-term technical setup, which suggests that a breakout above this threshold could unleash substantial upward momentum.

The $3 level is considered a pivotal resistance point for XRP. If the cryptocurrency manages to sustain a price above this level, it could signal a bullish trend, potentially attracting more investors and driving the price higher. Conversely, if XRP fails to maintain this level, it may experience a correction, pushing the price back down to lower support zones.

The technical indicators currently show a mixed sentiment. While there are signs of bullish momentum, the market is also exhibiting phases of consolidation, indicating that a clear trend has yet to emerge. This uncertainty underscores the importance of closely monitoring price movements around the $3 mark. Investors who are already holding XRP or considering entering the market should pay close attention to these developments, as a sustained breakout above $3 could unlock further upward potential.

XRP recently experienced a liquidity sweep, dipping below previous lows into a known support zone around $2. This move, often referred to as a “Swipe Liq / Adding more,” is a common tactic to trap sellers and collect liquidity before a sharp reversal. True to form, XRP quickly rebounded, suggesting a strong bullish reaction. A developing triple bottom pattern at the $2 support level further strengthens the case. Each dip into this zone has been met with aggressive buying, indicating heavy accumulation by market participants. This repeated defense of the $2 area reinforces its importance as a key support level and sets the foundation for a potential upward move.

Now, the next major hurdle for XRP lies at $2.48, a strong resistance zone that has been rejected twice. Therefore, a clean break and hold above this level would mark a shift in market structure, flipping resistance into support, and could signal the start of a bullish continuation, especially if backed by volume and momentum. If XRP convincingly breaks through $2.48, the next targets to watch are $3 and $3.40. These levels are psychological milestones and technically significant zones, aligning with previous price reactions.

However, a clear invalidation point remains; a close below $1.79 would break the current structure and suggest sellers are back in control. This level is a critical stop-loss zone for traders looking to manage risk. Currently, XRP is trading in line with the broader cryptocurrency market, which remains subdued amid equities reeling from the recent traffic-induced sell-off. Amid these conditions, on-chain data again indicates that most XRP investors are betting on the asset’s price rallying. Specifically, data shared by prominent on-chain crypto analyst shows that Binance futures trading data reveals that 70.33% of traders with open XRP positions are long, pointing to a strong bullish sentiment surrounding the cryptocurrency. The data shows that only 29.67% of accounts are short, resulting in a long/short ratio of 2.37. This shift in sentiment could suggest growing confidence in XRP’s price potential.

By press time, XRP was trading at $2.07, having plunged 3.6% in the last 24 hours. Over the past seven days, the token is down nearly 4%. As things stand, XRP is sitting above its 200-day simple moving average (SMA) of $1.76 but below the 50-day SMA of $2.38, suggesting long-term strength but short-term weakness. The analysis also highlights the significance of liquidation data, which shows high activity around certain price levels. For instance, significant liquidations have occurred around the $2.87 level, indicating that this area could act as a short-term support. If XRP manages to rise above $3, it could put pressure on short positions, potentially leading to further buying momentum.