- XRP holds $2.42 support and ranges to $2.59 after a liquidation-led drop.
- Reclaiming $2.74 to $2.83 on higher time frames puts $3.30 back in play.
- Analyst frames the selloff as leverage unwinds, not broad spot distribution.
Top crypto analyst has identified the critical levels on XRP’s price structure after last Friday’s flash crash, which led to the $20 billion in liquidations.
In his latest post on X, the analyst highlighted the revised support and resistance levels for XRP, projecting the potential outcomes depending on the cryptocurrency’s behavior around the identified regions.
XRP sets $2.42 support, trades toward $2.59
According to the analyst, XRP has established a new support at $2.42, which coincides with the 0.618 Fibonacci retracement level on the daily chart. Meanwhile, the closest resistance to the price as of the time of writing was $2.59.
Related: XRP’s Capped Supply Leads As Price Holds $2.40 to $2.60, Eyes $2.65 Break
Citing XRP’s current structure and prevailing price trend, the analyst noted that the cryptocurrency needs to reclaim the $2.74 – $2.83 region as support on the higher time frame to become bullish. He believes that achieving that feat would open the way for XRP to surge toward the $3.30 region.
Why the drop looked like liquidations, not selling
In the meantime, the crypto analyst observed a trend that cut across most altcoins during the recent crypto market pullback.
He noted that the RSI indicator showed a drop, while the L2 KDJ maintained its elevated status. According to the analyst, the development confirmed that the decline in prices occurred without a significant selling imbalance, but with a spike in liquidations.
The analyst’s observations suggest a sustained bullish sentiment in the altcoin market, particularly in the price of XRP, which has shown signs of a potential rebound after Friday’s crash. According to data from TradingView, XRP surged 50% following the selloff to reach a $2.64 local high.
In the meantime, XRP traded for $2.50 at the time of writing, ranging between the crypto analyst’s identified support and the next resistance. However, the cryptocurrency maintains a bullish sentiment supported by multiple narratives, including a potential ETF approval by the US Securities and Exchange Commission (SEC), which is expected to happen in the next few days.
Related: XRP Performance Update as Price Near $2.46, $2.80 Close Sets Up $3 Target
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
