thecryptobasic.com
As downward pressure persists in the crypto market, a top analyst has highlighted the next crucial support area for $XRP.
Specifically, Ali Martinez highlighted a massive demand wall for $XRP amid its continued price correction. The third-largest crypto asset by market cap has dropped below the $3 support after reclaiming it eleven days ago, as its struggles continue.
Next Key Support for $XRP
Martinez identified that $2.81 is the next crucial support area for $XRP if the downtrend persists. Why so? Because the cost basis distribution heatmap shows that a staggering 1.7 billion $XRP were accumulated there.
Nonetheless, should prices turn bullish, the chart also shows that a crucial resistance lies ahead. About 1,041,000,989 $XRP exchanged hands at a cost basis range of $3.26 and $3.27, which could provide selling pressure for $XRP if it reclaims the area.
$XRP Must Reclaim This Level to Avoid Steeper Corrections
Meanwhile, to provide further context on the crucial $XRP levels to watch, Martinez leveraged technical price analysis. In a parallel X post, he shared a chart that identified the level $XRP must reclaim to avoid a drop to $2.60 or even $2.
Specifically, he claimed that $XRP could face a steeper decline if it does not reclaim the $3.30 price level. Notably, the area lies close to its January peak and has posed as a resistance for $XRP in attempts on August 8 and 14 to reach higher prices.
If $XRP fails to regain $3.30, Martinez suggested it could further retrace by 12.75% from its current price to the support at $2.60. There is also a risk of more downsides, specifically a 32.8% correction to $2.
Remarkably, this aligns with a price outlook from Michael van de Poppe, who also noted in a recent commentary that $XRP needs to reclaim $3.40 or it crashes to $2.40.
$XRP Could Still Rally to New All-Time High
Nonetheless, $XRP bulls can still push $XRP to a new all-time high of $3.90, Martinez earlier mentioned. He shared that $XRP trades within a symmetrical triangle and needs to break above $3.26 to spur further upside.
If it does, $XRP could surge to a new all-time high of $3.90, setting the pace for greater heights. Meanwhile, some of the projected higher prices include a rally to $4.47 and $7.