XRP falls below the key support level of $3.25, facing a test at $3.05 in the short term! How to layout the battleground for bulls and bears?

The price of XRP has fallen from a high of $3.33, breaking through the key support levels of $3.285 and $3.25, and has lost the 100-hour moving average. Technical charts show that the bullish trend line on the XRP/USD hourly chart (support level at $3.24) has been breached. The current price is weakly consolidating below $3.15, and if it cannot recover the resistance at $3.22, it may further dip to the Fibonacci support level at $3.08. The MACD indicator is accelerating downward, and the RSI is below the medium term at 50, indicating that short positions currently hold the advantage. This article analyzes key support and resistance levels and potential long and short strategies.

Price Dynamics: Break below the rising trend line, short positions control the short-term rhythm XRP price has followed Bitcoin and Ethereum in a pullback, starting a new round of decline from the high of 3.33 USD. Key breakout points include:

1. Continuous breach of support: Successively fell below the psychological levels of 3.285 USD and 3.25 USD.
2. Trendline Break: The hourly chart shows that the key bullish trendline connecting recent lows (support level $3.24) has been effectively broken, indicating a weakening technical pattern.
3. Retracement of over half the rise: The current price has fallen below the 50% Fibonacci retracement level of the rise from $3.004 (recent swing low) to $3.33 (high).
4. Moving Average Resistance: The price is currently trading below $3.15 and is below the 100-hour Simple Moving Average (SMA), with a short-term technical structure leaning bearish.

Key resistance level: rebound must overcome multiple barriers If XRP attempts to rebound, it will face a dense resistance zone:

• Initial resistance: around 3.168 USD (previous support turned resistance).
• First strong resistance: 3.22 USD area (combined with previous trading zone and psychological level).
• Key breakout level: It is necessary to clearly stand above 3.25 USD (original support level, now resistance) in order to possibly challenge the 3.33-3.35 USD range.
• Medium term target: If it can continue to break through the above resistance, the next target for bulls looks towards the important level of 3.40 USD.

Downside risk: 3.08-3.05 USD support level becomes the focus for bulls and bears If the price cannot effectively break through the 3.25 USD resistance zone, a new round of decline may be initiated:

• Primary support: Around 3.08 USD, this position is also close to the 76.4% Fibonacci retracement level of the rise from the low of 3.004 USD to the high of 3.33 USD.
• Key defense line: 3.05 USD area. If the hourly chart closing price effectively falls below this level, it may open up greater downside potential.
• Deeper Support: The subsequent support level is at 3.02 USD, while the psychological level of 3.00 USD is expected to attract strong defense from bulls.

Technical Indicators: Strengthening of Short Positions

• Hourly Chart MACD: Located below the zero axis, and the histogram is showing a trend of increasing downward, indicating that short positions are accelerating in momentum accumulation.

• Hourly Chart RSI (Relative Strength Index): The current value is below the neutral level of 50, reflecting a weak market in the short term, with selling pressure prevailing.

  

Conclusion: XRP short-term technical structure weakens, with a strong resistance forming in the 3.22-3.25 USD range. Traders need to closely monitor the price reaction in the 3.08-3.05 USD key support area: if it stabilizes here with increased trading volume, a rebound may be brewing; conversely, if it effectively breaks below 3.05 USD, it may dip further towards the psychological level of 3.00 USD or even lower. In the current context of dominant short positions, it is advisable to remain cautious and wait for clear signals at key levels (effective breakthrough of resistance or stabilization and rebound of support) before making any moves. Pay attention to large on-chain transfers and Ripple's developments for their potential impact on market sentiment.

Key support levels: 3.08 USD, 3.05 USD, 3.00 USD Key resistance levels: 3.168 USD, 3.22 USD, 3.25 USD, 3.33-3.35 USD