XRP Faces Critical $2.98 Support Level Amid Market Uncertainty

XRP recently experienced a brief surge to a weekly high of $3.13, but the cryptocurrency has since lost traction, retreating to hover just above the $3.00 range. The broader cryptocurrency market, weighed down by Bitcoin (BTC)'s decline, is exerting downward pressure on XRP, pushing it to test the stability of its crucial $2.98 support level. Expert analysis highlights that maintaining this support is vital for XRP's short-term bullish outlook.

The $2.98 Support: A Decisive Level for XRP's Trajectory

Prominent crypto analyst CasiTrades has identified the $2.98 mark as a pivotal threshold. Posting on the social platform X, the analyst stressed the level’s importance in dictating whether XRP can sustain its bullish structure or face increased bearish momentum.

From a technical analysis perspective, XRP’s current price movements align with an ABC corrective structure, consistent with Elliott Wave Theory. According to CasiTrades, XRP is in Wave 4 of the correction, which is subdivided into an ABC wave formation. This correction represents a critical juncture for the asset, particularly as it tests the $2.98 level for continued support.

However, the momentum indicators add a layer of caution. Relative Strength Index (RSI) readings on the one-hour and four-hour charts do not signal bullish divergence, which would usually indicate a potential market reversal. The absence of these signals underscores the fragility of the $2.98 support. Should this level collapse, bearish pressure may deepen, extending the corrective Wave C toward Fibonacci retracement zones between $2.92 and $2.94.

On the shorter timeframes, such as the 15-minute chart, there is some evidence of minor bullish divergence, hinting at the possibility of a brief technical rebound. Still, these movements lack validation from broader timeframes, limiting their reliability. For XRP to preserve its bullish integrity, CasiTrades emphasized that robust buying demand must emerge at or above the $2.98 level.

Scenarios: Breaking Down or Holding Strong

Bearish Continuation Below $2.98

If XRP fails to maintain its position above $2.98, the breakdown could intensify selling pressure and deepen its corrective price action. In this scenario, the corrective Wave C may target Fibonacci retracement levels ranging between $2.92 and $2.94. Such a decline could trigger a cascade of liquidations, further dampening market sentiment. This underscores the urgency of defending this support level to prevent a broader downturn.

Potential Bullish Reversal Above $2.98

Conversely, if buyers manage to sustain XRP above $2.98, the cryptocurrency may stabilize and pave the way for further upward momentum. A successful defense at this level would set the stage for the initiation of Impulse Wave 5 under Elliott Wave Theory—a bullish continuation wave.

The first critical hurdle in this scenario would be a clean breakout above the $3.10 resistance level. Consolidation and strong trading volume at $3.10 would reinforce market confidence in a renewed uptrend. Beyond this, XRP could target $3.25 as the next key level, potentially extending gains toward $3.44 if bullish momentum remains intact.

XRP's Current Position and Market Outlook

As of this writing, XRP is trading at $2.98, reflecting a modest 2.09% decline over the past seven days. While this price action reflects broader market volatility, all eyes remain on the $2.98 mark as an inflection point. Whether XRP holds or breaks below this critical support will dictate its short-term trajectory and provide key insights into its longer-term potential.

For investors and traders, the $2.98 level should be closely monitored, as it represents a decisive battleground for bulls and bears alike. Continued weakness could exacerbate losses, whereas defending this level could restore optimism and fuel the next potential rally.

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