After yesterday’s bull trap, a notable market analyst has shared the price mark XRP needs to reclaim to decimate bearish momentum and continue its uptrend.
Yesterday, XRP haunted bears and bulls alike with a sharp movement in both directions. First, it surged over 5% to an intraday high of $3.2137 on bullish momentum from Ripple’s latest licensing before relinquishing most of its gains at the close of the day.
The double-edged drive has liquidated positions worth $11 million in the past 24 hours, and the late dump erased long positions worth about $7.40 million from the crypto market. Amid the uncertainties, an analysis has provided a crucial level XRP must reach to sustain bullish momentum.
Analyst Shares Make-Or-Break Level for XRP
In a recent commentary, market analyst Nebraskangooner highlighted that the Tuesday price reversal followed a rejection from the 1.337 Fibonacci extension at $3.221. The XRPL native token nosedived yesterday after hitting what the analyst termed the “bull trap fib.”
Following the price trend, the commentator suggested that XRP would continue the sideways push unless it conquers the Fibonacci level from which it was rejected yesterday. A successful retest and breach of the price range would ensure higher prices for the XRPL native token.
However, Nebraskangooner warned of further southward trends if XRP failed to reclaim the crucial level. An accompanying chart shows that if the bearish momentum escalates, the third-largest cryptocurrency by market cap could go as low as $1.9622.
XRP Price Action per Nebraskangooner
$3 Remains Crucial Support
Meanwhile, if XRP should take a downward turn, it would first have to detonate the support level at the $3 region. The demand wall has sufficed to prevent further XRP downturns as whales continue to accumulate around the region.
Analyst Egrag Crypto acknowledged this plight in a recent post. He noted that bulls have actively bought XRP every time it briefly trends below $3, reinstating sentiments that the asset would continue to hold the demand zone.
In the meantime, XRP has rebounded from yesterday’s lows, posting an almost 2% uptick. At press time, the asset trades at $3.1025 with a market cap of $179 billion.
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