Will XRP be able to regain the support level of 3 dollars or will it continue to fall?

Some support levels in the crypto market have become independent phenomena, and the price $3 for XRP is a typical example. This is a technical threshold that not only reflects the continuous changes on the exchange but also showcases the sentiment of traders.

In the context of the crypto market plummeting this week, as ETH fell below $4,000, traders witnessed XRP sliding below $3, leading to feelings of anxiety and subsequent market analyses.

On the Crypto Twitter social network, the debate is filled with many emotions, anticipation, and a healthy dose of complacency. Traders like CasiTrades have spotted early warning signs before the price drop, calling the $2.95 level a "survival barrier."

CasiTrades argues that this area is where analytical methods and critical thinking are used to distinguish valuable information and real trends from noise, misinformation, and superficial details that do not contribute to reasonable economic understanding or effective decision-making. It is where the buyers ultimately hope to sustain the upward momentum.

When this support level is broken, the price of XRP quickly drops to $2.77 at the time of writing, leaving a series of liquidations.

What will happen next?

However, the story is not just about the downward momentum and despair. Analyst Ali Charts has looked at the broader picture. He views the current correction as an opportunity. If XRP can stabilize and attract a certain amount of accumulation, a short-term price increase back to $3.50 is entirely possible.

XRP Price Chart | Source: Ali ChartsSome traders, like DefendDark and CryptoBull2020, view the recent drop as a typical high-volatility move, exhausting sellers and paving the way for a strong price increase when few expect it.

They point out that large liquidations can quickly reverse, especially if large institutional investors get involved, or if information about ETFs heats up again. In other words, the market is ready for surprises.

Source: Defend DarkThis is the message that EgragCrypto has emphasized for several weeks. By analyzing old charts and recent price action, Egrag presents two completely different scenarios (but with technical basis) for XRP's price.

Does an XRP price above $30 sound unreasonable? It might, but in the crypto market, what seems unreasonable sometimes becomes the everyday norm.

Egrag quickly emphasized that the more feasible move is to reclaim and defend the support level of $3. The level of $3.60 will be the real battleground to watch next.

What about the technical factors?

So where does that leave the technical factors? Currently, investors have focused around the support level $2.80–$2.87, as the RSI indicator is oversold, causing many short-term investors to seek the bottom. There is a lot of back and forth on the four-hour charts: a breakout back above $2.95 to $3.05 would create space for optimistic investors.

This will lay the foundation for a race to $3.20 and $3.60 if market sentiment changes. However, if the support level of $2.80 cannot be maintained, the price could quickly drop to $2.70 or even $2.62.

This is where previous whale auctions have occurred, but panic could cause prices to drop even lower if buyers hesitate. The context is not just related to the charts. Money from institutions and tracking ETFs are key players in this unfolding story.

With many XRP ETF proposals being submitted to the SEC, the market is divided between hope and skepticism.

Will Uptober break XRP's downtrend?

If there are positive signals in October, the potential for a rapid price increase is very feasible, with billions of dollars waiting to flow into the crypto market. Even in the context of this volatility, data shows that whales are accumulating during recent dips. This is a strong signal that large investors are willing to hold their positions through the noise.

However, the market is still very sensitive, and sentiment is under stress. The trading volume on the XRP ledger has surged. Each price drop ignites new debates about whether this is "a drop before a rise" or the beginning of a broader correction. If optimistic investors reclaim the level $3 and can hold it with confidence, a breakout towards $3.20 or even $3.60 will be entirely possible.

If this level acts more like a ceiling than a support, expect the price of XRP to move sideways while large investors continue to accumulate and day traders look for quick opportunities.

Mr. Giáo