XRP’s Battle to Reclaim the $3 Resistance Zone
The cryptocurrency XRP is navigating a challenging path as it attempts to break through the $3 resistance level. Analysts have identified crucial price thresholds that may dictate its upcoming movements in the market.
Current Resistance and Support Levels for XRP
According to insights shared by analyst Ali Martinez, XRP encounters a formidable resistance near the $2.90 mark. This level has recently been a battleground, with repeated efforts to surpass it proving unsuccessful.
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In a detailed analysis published on September 6, Martinez highlighted that should XRP face rejection once again at this resistance, it may descend towards the $2.70 support area. Historically, this zone has functioned as a vital foundation during previous market corrections.
Potential Upside and Downside Movements
For XRP to regain its bullish momentum, a clear and robust breakout above $2.90 is essential. However, current trends suggest that the cryptocurrency may oscillate between the $2.70 and $2.90 levels in the short term, reflecting a period of consolidation.
The Prospect of an XRP ETF
Adding complexity to XRP’s technical landscape is the impending deadline set by the SEC in October, regarding various spot XRP exchange-traded fund (ETF) applications. Notable financial entities such as Grayscale, 21Shares, Bitwise, and WisdomTree have submitted these filings.
With decisions anticipated between mid- and late October, there is a high probability of approvals. Should these ETFs receive the green light, analysts predict that institutional investments could exceed $5 billion, potentially providing the momentum required for XRP to surpass $3 and aim for even higher targets.
Until then, XRP may test the $2.90 resistance again, with potential scenarios including either a breakout to higher levels or a fallback to $2.70. If selling pressure intensifies, a deeper decline to the $2.73 and $2.69 range might occur.
In-Depth XRP Price Analysis
As of the current analysis, XRP is valued at $2.81, marking a 2% decrease over the past 24 hours, yet reflecting a slight increase of 0.84% over the week.
From a technical perspective, XRP’s present price resides slightly above its 200-day simple moving average (SMA) of $2.50, indicating a long-term bullish foundation. Nonetheless, it remains under the 50-day SMA of $3.07, signifying short-term challenges in regaining upward momentum.
Furthermore, the 14-day Relative Strength Index (RSI) is positioned at 43.67, below the neutral threshold of 50. This suggests a leaning toward bearish tendencies, albeit not reaching oversold conditions, which points to limited buying interest in the near term.
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