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XRP, the third-largest cryptocurrency by market capitalization, has captured attention with its recent price movements. XRP, which is currently trading around $2.65, is on the verge of a significant milestone - reaching $3. However, for this to happen, a crucial resistance level must be overcome.
XRP has been riding a wave of positive sentiment, fueled by renewed interest in altcoins and a broader bullish trend on the cryptocurrency market. The overall bullish trend on the cryptocurrency market has provided a supportive backdrop for XRP's price movements. This momentum has helped XRP break through several key resistance levels, including the $1 and $2 price points, but the $3 mark remains a formidable barrier.
Technical analysis has identified key resistance levels that XRP must overcome to achieve $3. Resistance to the $3 level is found in the $2.85 to $2.9 range. The $2.85 level specifically marks one that has historically posed significant resistance to the XRP price rally.
Notably, XRP's ascent in December 2017 stopped at the $2.85 level. Bulls retested this key level in the weeks that followed, successfully breaking it, and XRP later reached an all-time high of $3.18 in January 2018.
If history repeats itself and XRP successfully breaches the above key levels, it might pave the way for XRP to reach the $3 mark.
The $3 level is more than just a round number; it represents a near return to the all-time high set during the 2017 bull run. Hitting this key level could signal a strong bullish trend and attract more buyers, which might propel XRP to $4 and even $5.
XRP to hit $3?
While XRP’s potential to hit $3 is real, the $2.85 to $2.9 range stands as a decisive battleground. Surpassing this range could set the stage for a parabolic rise, but failure to do so might see XRP consolidating or retracing.
A broader crypto bull run might offer the tailwinds that XRP requires to break through. Positive news, such as additional legal victories, major partnerships or releases, and favorable regulatory developments, could tip the scales in favor of bulls.
While the outlook is optimistic, traders should be cautious of potential pullbacks. Key support levels to watch include $2.20 and $1.60, which could act as safety nets if the price falls temporarily. Maintaining these support levels might be critical for continuing the upward trend.