XRPUSD – Sharp Pullback Stalls at Key $3.00 Support Zone Amid Strong Buying Interest
XRP extended its decline on Thursday, continuing the sharp pullback that began on Wednesday with a 10% drop—the largest daily loss since March 3—after peaking at a new high of $3.66.
Persistent failure to break above the $3.66 resistance zone, reinforced by strong upper wicks and two consecutive Doji candles on the daily chart, signaled growing upside exhaustion. This, coupled with overbought conditions and bearish divergence on the Stochastic oscillator, triggered a wave of profit-taking and marked the beginning of a reversal.
Thursday’s session saw a fresh leg lower, breaching key support in the $3.00–$2.90 region. This zone includes a cluster of technical supports: the psychological $3.00 level, the 38.2% Fibonacci retracement of the $1.9080–$3.6650 rally, and the ascending 20-day moving average. Despite the breakdown, strong buying interest emerged, with price action forming a long lower shadow—hinting at potential downside exhaustion.
This price behavior could indicate an early reversal attempt, especially as broader technical indicators remain bullish. Notably, the recent golden cross between the 55-day and 200-day moving averages lends support to the underlying uptrend.
A close back above the $3.00 threshold is the minimum condition for a constructive near-term outlook, potentially signaling a failed breakdown or bear trap. Further confirmation would require a recovery above the 23.6% Fibonacci retracement at $3.2506.
If this scenario unfolds, the current correction would be viewed as a healthy consolidation within a larger bullish trend, setting the stage for a renewed push higher. A break above the recent $3.66 peak would expose the psychological $4.00 level as the next key resistance.
However, a failure to reclaim the $3.00 area could open the door to a deeper correction and temporarily sideline bullish momentum.
Key Levels:
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Resistance: 3.2506, 3.2931, 3.3449, 3.4227
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Support: 3.0000, 2.9525, 2.9040, 2.8592
