Peter Smith
XRP (Ripple) finds itself at a crucial juncture as momentum stalls near the $3.10 resistance level. After impressive gains earlier this month, the cryptocurrency is showing signs of weakness that could lead to a deeper pullback. Technical indicators suggest that while immediate support exists around current levels, a breakdown could trigger a move toward the psychologically important $2.78 support zone.
XRP Faces Headwinds After Rally Stalls
Following its strong performance earlier this month, XRP has encountered persistent selling pressure near the $3.10–$3.15 range, establishing this area as a formidable resistance zone. Famous analyst Ali notes that trading around $3.01, the cryptocurrency appears to be entering a consolidation phase.
Continued selling pressure could push XRP toward the $2.78 level, which represents a critical test for the token's broader bullish structure.
Technical Levels Under the Microscope
Support zones to watch: immediate support sits around $2.96 where XRP has previously found buying interest, secondary support exists between $2.85–$2.88 representing a former congestion area, and major support at $2.78 which could serve as the ultimate test for bulls. A successful defense of $2.96 might allow bulls to challenge the $3.10 resistance once again, while a breakdown could accelerate selling toward the $2.78 target.
Broader Market Dynamics
Several factors are contributing to XRP's current weakness. The broader altcoin market is experiencing a cooling period following strong summer rallies, creating headwinds for most alternative cryptocurrencies. Ongoing regulatory uncertainty in the United States continues to cast a shadow over XRP sentiment, despite recent legal victories. Additionally, short-term traders appear to be taking profits after XRP's breakout above the $3.00 threshold. However, long-term investors remain optimistic about Ripple's expanding institutional partnerships and its growing role in facilitating cross-border payments globally.
Critical Juncture Ahead
The next few trading sessions will likely determine XRP's short-term direction. A recovery above $2.96 would signal that buyers remain engaged and could set up another attempt at breaking the $3.10 resistance. Conversely, a failure to hold current levels could trigger a more significant correction toward $2.78. Successfully defending this major support level will be essential for maintaining XRP's longer-term upward trajectory and preventing a deeper bearish reversal.
Peter Smith
