XRP holds above $2.99 support amid market volatility: check forecast

The cryptocurrency market has been extremely volatile over the past few hours, with mixed performances recorded across the board. Bitcoin dropped to the $115k range after losing 2% of its value.

However, ETH and XRP, the two leading altcoins by market cap, added over 2% to their values while some major altcoins underperformed. XRP has held strong around the $2.99 support level and could serve as the springboard for another rally.

XRP maintains its price above $3 amid $105m in long liquidations

XRP, the native coin of the Ripple ecosystem, is currently up nearly 2% in the last 24 hours despite the broader crypto market recording losses. The total crypto market cap has dropped below $3.8 trillion after Bitcoin’s price slipped to $115k on Thursday.

However, XRP has been able to defend the support level at $2.99, and this could allow it to rally higher in the near term.

The market’s volatility also resulted in leveraged traders recording huge losses. Recent data from CoinGlass revealed that a liquidation wave erased over $100 million in XRP long positions within the last 24 hours. 

Despite the ongoing market correction, analysts are optimistic that the medium-term outlook remains positive. In an email with Ruslan Lienkha, chief of markets, YouHodler, the analyst pointed out that the technical indicators remain positive. He stated that,

“Despite short-term price weakness, the medium-term outlook for the crypto market remains constructive. Broader financial markets continue to display optimism. Investor appetite for risk assets remains strong, driven by a favorable macroeconomic environment, low recession risks, and ongoing capital flows into equities and digital assets.

In this context, the current correction in crypto is a healthy pause within a larger upward trend. Unless an unexpected shock, often referred to as a “black swan” event, disrupts macroeconomic stability, it’s reasonable to expect that Bitcoin and major altcoins will resume their upward momentum over the coming weeks.”

XRP eyes $3.2 resistance level 

The XRP/USD 4-hour chart has turned bearish as the coin is down 12% over the last seven days. The technical indicators on the lower timeframe have also switched bearish, suggesting that sellers are currently in control. 

At the time of writing on Friday, XRP continues to trade down at $3.09. The bulls have defended the $2.99 support level over the last few days. If this support level holds, XRP could rally to the first major resistance level at $3.2 over the next few hours. An extended bullish run would allow XRP to retest the weekly high of $3.66.

However, the bullish momentum is fading, and XRP could experience some selling pressure. If the daily candle closes below the $2.99 support level, XRP could retest the next daily support at $2.72.

The MACD lines have crossed over into the bearish region, while the RSI of 38 shows a strong selling pressure.

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