XRP Price Must Break Key Resistance at $3 to Unlock New All-time Highs

Key takeaways:

XRP (XRP) price is down by 7.6% on Tuesday to an intraday low of $2.80 from a five-month high above $3 on Monday. Analysts say the key resistance level at $3 must be broken to clear the path to new all-time highs. 

XRP price must flip $3 into support 

XRP’s 33% rally between July 8 and July 18 was halted by resistance at $3. Bulls must now overcome the resistance at $3 to avoid a deeper correction. 

Historically, rejection from $3 has always preceded a significant decline in XRP price. For example, the last time the XRP/USD pair ran into resistance at $3 in March was followed by a 46% drop in price to a multimonth low of $1.61 reached on April 7.

If XRP breaks $3, the next stop could be new all-time highs, said crypto analyst CasiTrades in a Tuesday post on X.

According to the analyst, this level aligns with the macro 0.118 Fibonacci retracement from $3.40 and “reclaiming it would be another massive signal that Wave 3 is alive and accelerating.” 

Related: XRP price ‘highly rare’ setup eyes 60% gain past $3, veteran trader says

CasiTrades said a breakout above $3, followed by a quick retest that confirms it as a new support, would see immediate continuation to $3.40 and beyond.

“Once $3.40 (ATH) breaks, it will likely shock people how quickly this runs. There’s not much in the way after that. Expect it to be incredibly fast and volatile! ”

As Cointelegraph reported, XRP price must break $3 to clear the path toward $3.40 and higher.

XRP liquidation heatmap hints at $3.04-$3.14

The Binance XRP/USDT liquidation heatmap reveals key liquidity zones where large liquidation events may occur. These levels often act as magnets, influencing price direction based on the amount of liquidity at a given level.

A high concentration of liquidations is visible above $3.04, with the yellow area indicating a cluster of leveraged positions, suggesting that it’s a significant resistance level.

If the $3.04 level is broken, it could spark a liquidation squeeze, forcing short buyers to close positions and driving prices toward $3.14, the next major liquidity cluster.

The latest rise in XRP price was accompanied by an uptick in leveraged positions, with the aggregate open interest (OI) reaching $8.11 billion, up 121% since June 23. This is 3% below the peak of $8.33 billion reached on Jan. 19.

Despite the higher risk of liquidations in the event of a deeper XRP price correction, derivatives data points to further upside potential.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.