XRP Price Today: XRP Reclaims $3 as Analysts Eye a Third Wave Breakout

XRP price today is holding firm above the $3 level despite volatile market conditions, fueling speculation about whether the token is preparing for a third wave breakout.

The digital asset has faced rising trading volume and mixed sentiment, leaving traders questioning if the move will trigger fresh gains or lead to another bull trap.

As XRP consolidates, its performance is drawing increased attention from market watchers. The token’s resilience above key support levels highlights strong demand, but with liquidity pressures in play, XRP’s next direction remains a pivotal question for the week ahead.

XRP Price Consolidates Above $3.05

XRP has managed to trade above $3.05, an important near-term level that could determine the direction of the token’s next move. While the cryptocurrency has faced selling pressure over the past few sessions, it has shown signs of stability that suggest buyers are still active at lower levels.

XRP was trading at around $3.07, down 1.18% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Trading volumes also increased noticeably, which would typically indicate higher market activity. But if the activity is profit-taking or accumulation on the part of strong hands is a big question. For now, the fact that XRP is able to hold above $3.10 indicates that bulls are not ready to relinquish momentum just yet.

Volume Spike Triggers Breakout or Bull Trap Argument

The sudden pick-up in trading volume has stirred controversy among market players. Daily trading volume surged 47.79%, reaching $5.93 billion. Historically, such increases can precede strong breakouts, but they can also be liquidity traps, wherein near-term rallies quickly reverse.

If the heightened activity represents true accumulation, XRP may be setting up for a bigger move to the upside. But if selling pressure takes over, traders may witness a deep pullback before any significant recovery can ensue. The market’s response in the next few days should make it clearer on which course of action prevails.

Third Wave Breakout Scenario in Focus

Analysts have noted the possibility of a third wave breakout in XRP’s current Elliott Wave pattern. Technically, it is one of the strongest upward phases, tends to have a lot of momentum, and price increases.

XRP faces a critical juncture as traders debate whether it is preparing for a third wave rally or a potential bull trap. Source: @SashawhyNOT via CoinMarketCap/Community

For XRP, a breakout may propel prices towards upper resistance levels, with possible short to medium-term target zones in the $3.50 and $4.00 areas. This forecast, however, hinges on the capacity to support around the $3.05 level and gain sustained buying pressure.

Major Support and Resistance Levels to Watch

The $3.05 support remains the most important level for XRP on a short-term basis. Moving above this level will be crucial in sustaining the bullish sentiment. Loss of this support will expose the token to more corrections towards the $2.80 region.

XRP price breaking above the $3.40 resistance will resume the long-term upside rally. Source: DojiClub on TradingView

On the upside, resistance at $3.40 and $3.66 levels are key obstacles. A confirmed breach of these areas will swing sentiment firmly in the bulls’ favor, reinstating the potential of a strong third-wave rally.

Outlook for XRP Price Today

XRP price today has a market standing at a crossroads, with both bullish and bearish scenarios interacting. The upside strength above $3.05 is promising for another push higher, but traders are treading carefully given the high volatility and dubious volume conditions.

Should momentum build and buyers hold the line, XRP may be set for a powerful breakout. Until confirmation is received, however, investors will continue to weigh the risk of a possible bull trap against the potential for a third wave move.