The $XRP has recently experienced a meteoric rise, reaching new multi-year highs. However, its inability to maintain these high gains has triggered a healthy correction, offering long-term investors a golden opportunity to enter the market. As the price flirts with the crucial level of $3, XRP bulls must act quickly to seize this window of opportunity. Technical analysis of XRP reveals that the 20-day exponential moving average (EMA), around $2.90, represents essential support to watch. A strong rebound at this level would signal an influx of buyers ready to push the price to higher peaks. Indeed, XRP has just dropped to $2.98 as the altcoin market undergoes its first phase of profit-taking after a notable recovery.
XRP has not only just rebounded off its 20-day MA, but also in an interesting demand zone, a significant liquidity area on the VPFR. The probabilities for a rebound at this level are stronger than for a short-term bearish continuation.
In the event of a rebound, the next major obstacle is at $3.66, a resistance level that has already been tested multiple times. A breakthrough of this threshold would pave the way for a progression towards $4 and $4.86.
