Can XRP Price Hold Above $3 As Analysts Warn Of A Possible Drop To $1.96

Market analyst Nebraskangooner has identified $3.221 as the key resistance XRP price must break to maintain its upward momentum.

At this level, cryptocurrency was registering highs before it faced strong selling pressure which led to this reversal.

This rejection was at the 1.337 Fibonacci extension level, which is a resistance level on the chart.

Since this pullback, XRP price went as low as $3 and stood just slightly higher at the time of writing.

Analysts expect the price to rise again and buying to resume after the recent dip with a rally needed to break the $3.221 resistance level.

If there is no breakout, the price of the asset may compress and start trading sideways or even move lower.

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Analysts Warn of a Potential Drop to $1.9622

If the XRP price fails to reclaim the key resistance level, analysts predict that bearish momentum could accelerate.

Market data suggests that if sellers regain control, the token might experience a decline toward $1.9622.

This level represents a major support zone that could determine the cryptocurrency’s longer-term trajectory.

XRP recent price movements have triggered mass liquidations in the market.

Over the past 24 hours, leveraged trades worth $11 million have been liquidated, with long traders accounting for $7.4 million in losses.

If the price remains below key resistance levels, the bearish trend could continue, leading to further liquidations.

XRP Price $3 Support Zone Sees Whale Accumulation

More so, XRP price has shown significant fluctuations but has remained relatively stable above $3, which serves as a support level.

Notably, analysis shows whenever the price of XRP gets close to this zone, large investors keep buying the asset.

Whales appear to support the demand zone, potentially strengthening the asset short-term.

Market analyst Egrag Crypto pointed out that bulls have successfully supported and kept the price above $3 in the recent trading sessions.

Each time XRP briefly falls below this level, demand from the buyers comes in to offset the supply from sellers.

This may spark further sell-off if demand continues to be robust. However, if the support is not maintained it can lead to even more declines.

Ripple and Ondo Finance Partner to Bring OUSG to XRPL

Additionally, in a move to expand institutional adoption, Ripple and Ondo Finance have partnered to bring the tokenized U.S.

Treasury fund OUSG to the XRP Ledger (XRPL). Ondo Finance has announced plans to deploy OUSG on XRPL within the next six months.

OUSG is backed by U.S. Treasuries and BlackRock’s BUIDL fund, offering investors a regulated and yield-driven investment option.

By integrating OUSG into XRPL, Ondo Finance will enhance institutional access to real-world asset (RWA) tokens.

The deployment aligns with XRPL’s regulatory framework, which includes Decentralized Identifiers (DIDs) and on-chain credential management.

In the context of XRPL, OUSG offers benefits such as security and institutional connections to the users.

Users will still be able to interact directly with the OUSG transactions via Ripple’s RLUSD stablecoin solution.

At press time, XRP price stands at $3.14 per coin with a 2.25% increase recorded during the past 24-hour period. Analysts maintain an optimistic outlook as bulls preserve the $3 support level.