XRP has just recorded a significant breakout by forming a new higher high on the daily (1D) market structure, fueled by positive sentiment following the approval of the Ethereum spot ETF. The price even managed to break through the $3.40 level, signaling a surge in volume and market euphoria. However, after this rally, early signs of trend exhaustion and a potential correction have started to appear.
New Resistance Zone & Liquidity Sweep
The $3.40 level now acts as a strong resistance after absorbing significant liquidity. The price’s inability to sustain above this zone increases the likelihood of a short-term reversal. In addition, daily RSI and EMA indicators are beginning to show overbought conditions, adding to the short-term selling pressure.
Correction Potential & XRP Re-Entry Zone
Analysts project a possible correction toward the $2.70–$3.00 area as an ideal accumulation zone. This range is often referred to as the "Re-Entry Point" since it aligns with previous support and the position of the daily 50 EMA. If the price drops into this range, accumulation opportunities could become more attractive, especially for traders anticipating the next bullish momentum.
Medium-Term Outlook for XRP
While a short-term correction is possible, the medium-term outlook for XRP remains bullish as long as the price does not break down from the $2.70 and $1.75 zones. The overall market structure remains upward (bullish), with further targets aiming for a new All-Time High (ATH), provided key supports hold.
Conclusion
For XRP traders and investors, the $2.70–$3.00 zone could serve as a potential re-entry area for accumulation, given the overbought signals and resistance at $3.40. However, the medium-term outlook remains positive as long as the market structure stays above key support levels. Always use additional technical analysis and manage your risk before making any decisions.
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