Last Friday, XRP hit $3.66, its highest level in years, and it was a big deal. Not only did the move turn heads, but it also pushed XRP's market cap above that of the real McDonald's. Yes, the crypto was worth more than both Big Macs and McFlurries for a short time. But before you start calling it the new king of finance, things got shaky.
The rally died down, and it was clear that some traders couldn't resist the urge to make money off the spike. To be honest, who can blame them? A multi-year high is a good time to leave.
Now for the big question: Is this just a healthy break, or are the bears getting ready to attack?
What's Going On with the Charts?
XRP/USDT has dropped below $3 and bounced back strongly from here; it means that bulls are still hiding in the dip-buying shadows. If the token bounces back strongly, it could go back to $3.66. If it breaks through that level, it could go up to $4 and even $4.86.
I would keep snacks close by because this could be fun.
We might have to face the hard truth that the breakout above $3.40 was just a bull trap if XRP can't hold that $2.99 line. The bears have already pushed the pair below $3. The next stops on the way down are $2.8 and $2.7.
If XRP can hold on in this support zone and rise above the moving averages again, the correction mood might be over, and bulls could be ready to rumble again.
On the other hand, if any recovery fails at the 20-day EMA, it means that sentiment has changed from buying dips to selling rallies, which is not what any crypto holder wants to hear. That puts $2.60 in the crosshairs and puts off any hopes of new highs.
Gunel Ismayilova
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