XRP Price Prediction: Double Bottom Forming with Downside Risk as XRP Holds Above Support Level of 3 USD

XRP is showing signs of a double bottom pattern, a potential bullish signal, but bearish pressure remains. According to our analysis, the support level of $3 is crucial, as XRP continues to hold above this level despite market instability. However, weakening on-chain indicators may put pressure on buyers, making them likely to lose momentum and increasing the risk of sell-off. XRP Best Month Recorded July has been the strongest month for XRP so far, with significant growth following some market updates. Data from CoinMarketCap shows that XRP has increased by over 41% in the past 30 days, holding steady above the important support level of 3 dollars. According to Coinglass, XRP has faced a wave of liquidations in the past 24 hours. The total value of these liquidations is over $17.5 million, with nearly $13 million coming from long positions, as buyers exited after being rejected at around $3.2, leading to a sell-off.

The open interest ( of XRP has decreased slightly by 0.16%, currently at 8.46 billion dollars. Despite the slight decrease, the funding rate ) remains positive at 0.0092%, indicating that traders are still leaning towards a bullish outlook, although bearish pressure is increasing. In the past week, the monthly XRP futures contract has continuously traded at a premium of 6% to 8%, indicating that market sentiment remains stable throughout the $3 price retest. Even when XRP slightly rose above $3.6, the demand for leveraged long positions did not increase significantly. A part of the demand to buy XRP recently also stems from speculation about a spot ETF being approved by the United States. If approved, it could also positively impact other altcoins, including Litecoin and Solana. What Will the Price of XRP Be Next? XRP is currently facing strong competition between buyers and sellers around the simple moving average (SMA) 20-day at $3.1. At the time of writing, the price of XRP is trading at $3.08, falling more than 1.5% in the past 24 hours. Looking at the XRP price chart, the sellers have continuously failed to establish a position below the $3 level, the 38.2% Fibonacci retracement level. The price action, when viewed on the hourly chart, shows a double bottom pattern forming at the $3 level, with the neckline resistance at $3.334 (the highest level on the 28th of the month 7).

If the price falls below the support level of $3.05, it could drop further to around $2.95. Buyers are likely to defend this level strongly, as a break below this level could lead to a deeper decline to $2.80. On the other hand, if XRP bounces back from the $3 level, it will indicate strong buying power at lower levels. Although the 20-day SMA may act as a resistance level during the recovery, if the buyers can overcome it, the XRP/USDT pair could rise to $3.33 and may even reach $3.7. The RSI indicator has strongly bounced back, currently trading at 46. Although it is still below the midline, buyers remain confident enough to push the price back to test the 3.3 dollar level.