XRP Faces Key Challenge at $2.98 Support Level Amid Bearish Trend

XRP recently reached a high of $3.13 but has since slipped to around $3.00, testing its support level amid a broader market slide. Technical analysis identifies the $2.98 support line as crucial for maintaining bullish momentum.

Key Highlights

XRP is currently trading near the $3.00 mark, with a critical support level at $2.98 that must hold to sustain upward momentum.
Technical analyst CasiTrades notes an Elliott Wave ABC corrective pattern in play, suggesting potential additional downside pressure if the price falls below $2.98.
A break below $2.98 could lead to further declines towards Fibonacci levels, specifically between $2.92 and $2.94.
The 15-minute chart shows a short-term bullish divergence, but higher timeframe confirmations are needed for a sustained reversal.

Potential Outcomes

If XRP holds above $2.98, it may stabilize and enter a consolidation phase, setting the stage for another upward move, potentially forming an impulse Wave 5.
Breaking through the $3.10 level with sufficient volume would indicate renewed bullish momentum, with resistance targets at $3.25 and $3.44.
Currently, XRP is trading at $3.01, down by 2.8% over seven days. Maintaining the bullish structure above $2.98 is crucial to prevent a deeper downtrend.

Chart image from X: CasiTrades