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XRP, the third-largest cryptocurrency by market capitalization, has made an important move following four consecutive days of drop from July 30 to Aug. 2.
XRP has slightly rebounded in the early Sunday session, sparking speculation of a potential reset in momentum.
Early Sunday trading saw the token bounce from a low of $2.72 to a high of $2.89, forming an intraday green candlestick, although the price is still down 1.53% in the last 24 hours at $2.87, according to CoinMarketCap data.
XRP has battled significant selling pressure over the past week, falling 10.03% in the last seven days as it went below the closely watched $3 mark and tested deeper support.
However, buyers stepped in around $2.72, sparking a rebound that might pave the way for a larger reversal. Traders are now focusing on immediate resistance levels in the $2.90-$3.00 range, which will likely determine whether this rebound evolves into a sustained rally.
What's next for XRP price?
XRP's price drop was contributed to by institutional selling; according to Ali, a crypto analyst, whales sold over 710 million XRP in the past 24 hours.
XRP's drop wasn't isolated either, as macroeconomic uncertainty contributed to a broader sell-off in the larger crypto market.
According to Ali, on-chain data shows that past accumulation behavior points to $2.80 as a temporary buffer for XRP, but real support begins below $2.48. In an earlier tweet, the crypto analyst suggested that XRP might find support around $2.55-$2.40.
XRP could be building a double bottom pattern, and a close above $3.30 could confirm the breakout and lead to $3.60. First, the crypto asset might need to reclaim the $3 level.
Institutional inflows or continued exchange outflows will be watched, since these could validate accumulation narratives as well as overall crypto market sentiment.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team