XRP has just made a historic breakthrough above $2.50, confirming the uptrend that started in early September. Surging volumes, increasing buying pressure, and technical indicators all suggest a move towards the $3 zone. However, extreme volatility is expected, making the next few days crucial to confirm the breakout.
Technical analysts are now eyeing the $3 zone as the next major resistance level for XRP. This target price isn’t chosen randomly: it corresponds to the 61.8% Fibonacci retracement calculated from the 2018 all-time high. Momentum indicators like the RSI are moving in bullish territory without showing dangerous overheating, which leaves room for the movement to continue.
Order book analysis reveals significant accumulation between $2.40 and $2.50, suggesting these levels could serve as solid support in case of a temporary correction. Market makers appear to be positioning substantial liquidity in this zone. This strengthens the probability of a technical bounce if the price temporarily retreats.
However, certain signals call for caution. On-chain data shows an increase in transfers to exchanges, traditionally interpreted as a sign of imminent profit-taking. Market sentiment is also reaching euphoric levels that historically often precede consolidation phases.
Two main scenarios are emerging according to chart pattern analysis. The bullish scenario would see XRP briefly consolidate around $2.50 before attacking the $3 resistance in the next two to three weeks. This trajectory would require maintaining current buying volumes and the absence of major negative catalysts in the overall cryptocurrency market.
The alternative scenario involves a technical correction toward the $2.20-$2.30 zone, allowing for the purging of excessive leveraged positions and building a more solid base. This consolidation wouldn’t challenge the underlying bullish trend, but rather offer an accumulation opportunity for investors who missed the initial entry.
The inherent volatility of the crypto market requires rigorous risk management. Experienced traders use tight stop-losses and split their positions, while long-term investors prefer dollar-cost averaging to smooth their average entry price.
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