XRP has fallen to its crucial support area near $2.85–$2.87, reflecting mounting pressure across the cryptocurrency market after more than $500 million in leveraged long positions were liquidated in the past 24 hours. The token’s recent retracement comes after a failed attempt to break above the $3.10–$3.20 resistance zone, where heavy selling emerged.
The 4-hour chart shows XRP forming a descending wedge pattern, followed by a breakout that failed to sustain momentum. Price has since retested the green demand region that previously triggered a strong rebound in mid-September. Analysts are now closely monitoring whether bulls can defend this level to prevent a deeper correction toward $2.70.
Technical Structure Signals Key Turning Point
XRP’s recent rejection near $3.20 coincided with increased trading volume, suggesting profit-taking and short-term liquidation pressure. The red supply zone above remains a strong resistance area that bulls must reclaim to regain control.
If XRP holds above $2.85, traders expect a possible bounce toward $3.05, aligning with the upper range of the current consolidation channel. However, a decisive close below $2.85 could open the door to a sharper decline, especially if market-wide sentiment continues to weaken.
“This level is critical for short-term direction,” said BITX market strategist. “If XRP maintains this support, it could mark a base for recovery, but a clean break below $2.85 would confirm bearish continuation.”
Market-Wide Volatility Fuels Pressure
The broader crypto market has seen heightened volatility as funding rates reset and speculative longs unwind across major exchanges. According to derivatives data, over $500 million in crypto liquidations were recorded, primarily impacting Bitcoin, Ethereum, and high-beta altcoins like XRP.
Despite short-term turbulence, some analysts view the current dip as a healthy retracement within XRP’s broader uptrend. “Institutional positioning remains constructive,” According to BITX analysts, “but sustained recovery depends on reclaiming the $3.10 resistance and renewed spot buying interest.”
As XRP consolidates near a key technical level, traders will be watching closely whether bulls can defend the $2.85 support or if further downside awaits amid tightening global risk sentiment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.