XRP returned to the $3 support level before rebounding. Will there be another nosedive, or is it ready for a lift-off?

Key Support levels: $3 

Key Resistance levels: $3.6, $4

1. Pullback in Progress

After a sharp rally that took XRP to a new all-time high above $3.6, sellers returned to take this cryptocurrency into a pullback. The price has now corrected and arrived at the $3 support. So far, buyers have managed to hold at this level and stop the downtrend. However, their resilience may be tested again soon.

Chart by TradingView

2. Momentum Favors Sellers

On the daily timeframe and below, bears have the upper hand right now. This can also be seen on the volume profile, which has been dominated by sellers lately. The good news is that the sell volume has been falling, which shows bears are less interested here than at $3.6.

Chart by TradingView

3. MACD Bearish Cross

The daily MACD did a bearish cross last Friday, and the downtrend has accelerated since. Right now, there are no signs that this trend would change. This makes a retest of the $3 support likely. Should it hold for a second time, then buyers may have an opening to reverse this price action and put XRP back on the offensive.

Chart by TradingView SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.