As downward pressure persists in the crypto market, a top analyst has highlighted the next crucial support area for XRP.
Specifically, Ali Martinez highlighted a massive demand wall for XRP amid its continued price correction. The third-largest crypto asset by market cap has dropped below the $3 support after reclaiming it eleven days ago, as its struggles continue.
Next Key Support for XRP
Martinez identified that $2.81 is the next crucial support area for XRP if the downtrend persists. Why so? Because the cost basis distribution heatmap shows that a staggering 1.7 billion XRP were accumulated there.
The analyst shared a chart from Glassnode, which shows massive XRP acquisition at a cost basis range of $2.811 and $2.818, serving as a massive support area for XRP should the sideways drive continue. From the current market price of $2.98, this represents a further 5.7% correction.
For context, the massive accumulation in the $2.81 region suggests that investors view the area as a good entry price, hence the large buy volume. Furthermore, they would likely hold their stash or buy more in the area, providing demand pressure that could possibly invalidate downtrends and spark a price rebound.
Nonetheless, should prices turn bullish, the chart also shows that a crucial resistance lies ahead. About 1,041,000,989 XRP exchanged hands at a cost basis range of $3.26 and $3.27, which could provide selling pressure for XRP if it reclaims the area.
XRP Must Reclaim This Level to Avoid Steeper Corrections
Meanwhile, to provide further context on the crucial XRP levels to watch, Martinez leveraged technical price analysis. In a parallel X post, he shared a chart that identified the level XRP must reclaim to avoid a drop to $2.60 or even $2.
Specifically, he claimed that XRP could face a steeper decline if it does not reclaim the $3.30 price level. Notably, the area lies close to its January peak and has posed as a resistance for XRP in attempts on August 8 and 14 to reach higher prices.
If XRP fails to regain $3.30, Martinez suggested it could further retrace by 12.75% from its current price to the support at $2.60. There is also a risk of more downsides, specifically a 32.8% correction to $2.
Remarkably, this aligns with a price outlook from Michael van de Poppe, who also noted in a recent commentary that XRP needs to reclaim $3.40 or it crashes to $2.40.
XRP Could Still Rally to New All-Time High
Nonetheless, XRP bulls can still push XRP to a new all-time high of $3.90, Martinez earlier mentioned. He shared that XRP trades within a symmetrical triangle and needs to break above $3.26 to spur further upside.
If it does, XRP could surge to a new all-time high of $3.90, setting the pace for greater heights. Meanwhile, some of the projected higher prices include a rally to $4.47 and $7.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
