XRP, the 4th biggest cryptocurrency in the market, is currently trading at $2.36 with a market cap of $136 billion. However, the increased price fluctuation in the crypto market has resulted in an 11% pullback in XRP over the past 24 hours.
Nevertheless, the 7-day returns for XRP remain positive at 6.14%. The volatility in XRP is testing a crucial support level, hinting at a potential revealing XRP at a crucial crossroads.
Will the bearish dominance in the overall market result in a pullback in XRP under the $2 psychological mark? Let’s find out.
XRP Technical Analysis
In the daily chart, the XRP price trend reveals a massive bullish engulfing candle of nearly 35% surge on Sunday. However, the bullish failure of the broader market to hold the momentum resulted in a pullback in XRP from the $3 psychological mark.
On Monday, the XRP price fell by 18.83%, creating a bearish piercing candle. The bearish inflation continues with an intraday pullback of 1.39%, with a 24-hour low at $2.21.
However, the lower price rejection reveals a bullish dominance of XRP at the 38.20% Fibonacci level at $2.22. Furthermore, the lower price rejection reflects the dynamic average line of the 100-day EMA, providing a cushion to absorb the increased supply pressure.
Nevertheless, the short-term increased volatility has resulted in a bearish crossover between the 50- and 20-day EMA lines. Currently, XRP price is taking support from the 38.20% Fibonacci level, hinting at a potential comeback to the 23.60% Fibonacci level at $2.63.
The massive price fluctuations have undermined the previous symmetrical triangle pattern and reflected a massive volatility surge. However, the MACD and signal line maintain a positive alignment due to the recent bullish spike.
Furthermore, the long-term and dynamic average lines of the 100- and 200-day EMA lines maintain a positive alignment. Hence, the XRP price is likely to consolidate before restarting a bullish recovery.
Will XRP Price Recover Above $3?
Amid the increased price fluctuations, crypto whales have lined up to acquire XRP. As per the analyst Ali Martinez, in the past 24 hours, the whales have bought nearly a billion XRP tokens.
Whales bought nearly 1 billion $XRP in the last 24 hours! pic.twitter.com/5KTdhjb0jg
— Ali (@ali_charts) March 3, 2025
According to the XRP price action analysis, the recovery in XRP must sustain a bullish trend above the $3.00 psychological mark for a new recovery run. As per the Fibonacci levels, the crucial resistance for XRP remains near the $3.30 mark.
In case of a bullish recovery beyond this point, the XRP price could reach the overhead resistance trend line close to the $3.72 mark. On the flip side, the crucial support level for XRP remains near the 50% Fibonacci level at $1.89 and the 200 EMA line.
