XRP Short-Term Downtrend: Will $3.10 Hold as Key Support
XRP’s 4-hour chart reveals a short-term downtrend after the cryptocurrency faced resistance at the $3.40 mark. Following this rejection, XRP has been forming a series of lower highs, suggesting weakening bullish momentum. However, support at the $3.10 level remains intact, offering a glimmer of hope for a potential rebound.
Current Market Structure: Lower Highs and Key Support at $3.10
After testing resistance at $3.40, XRP has struggled to maintain upward momentum. The cryptocurrency has been consistently forming lower highs, which typically signals a bearish shift in the market. Despite this, the $3.10 support zone has held firm, preventing further downside movement for the time being. This suggests that the market is still finding a base at this level, though the current downtrend persists.
Resistance at $3.20 remains unbroken, and XRP has been unable to reclaim this level, reinforcing the bearish sentiment in the short term. The inability to break above $3.20 indicates that sellers are still in control, at least for now. Traders will need to see a sustained breakout above this level for confirmation of a potential recovery.
Volume Trends and Fading Selling Pressure
One encouraging sign for XRP traders is the decreasing volume during the recent retracement. Lower volume during pullbacks often signals that selling pressure is fading, which could indicate that a reversal is approaching. This pattern hints that XRP may be forming a base near $3.10, preparing for a potential bounce if buyers regain control.
For a bullish scenario to unfold, XRP would need to break through the $3.20 resistance level with rising volume. A confirmed breakout above this level could set the stage for a recovery, possibly targeting the $3.30 to $3.40 range once again. Increasing volume during such a breakout would be a strong confirmation of renewed buying interest.
Potential Downside: What to Watch for Below $3.10
On the other hand, if XRP fails to hold the $3.10 support and breaks below it, the price could face further downside. A breach of this critical support level may lead to a retest of lower levels, potentially pushing the price toward the $3.00 mark.
: Patience for a Clear Signal
XRP’s current market structure suggests that traders should remain patient and watch for either a breakout above $3.20 or a breach below $3.10. Volume trends and price action will be key indicators in determining the next move for the cryptocurrency.
