XRP recently saw a sharp spike above $3.4 but quickly retraced to a key support level. Let's evaluate the current market state and potential scenarios.
Daily Chart of XRP
XRP managed to break above $3.4 in mid-July, triggering increased liquidity. However, this move also attracted sellers, resulting in a significant drop back toward the support level around $2.7, which coincides with the 0.5 Fibonacci retracement level. This zone is expected to act as short-term support, which may lead to consolidation within the $2.7–$3.4 range.
4-Hour Chart of XRP
On the 4-hour chart, the breakout above $3.4 quickly reversed as selling pressure stepped in. XRP declined, finding support in the 0.5–0.618 Fibonacci retracement zone, triggering a minor bullish pullback. The current price is range-bound between $2.7 (support) and $3.1 (resistance). If the price breaks above $3.1, a test of $3.4 could be possible, while a breakdown below $2.7 would open up $2.58 as the next key level.
Financial Conclusions
This price behavior reflects market manipulation and liquidity dynamics. Caution is advised, and one should watch for a confirmed breakout before deciding on the next steps.
Following the sharp decline, XRP is consolidating ahead of its next move. Investors should closely monitor key support and resistance levels.
