XRP Must Recapture This Level To Avoid A Sharp Correction As Coin Slips Below $3, Says Analyst

XRP XRP/USD tumbled alongside other leading cryptocurrencies Sunday night, dropping below the psychologically crucial level at $3.

XRP To Drop Further To $2?

The third-largest cryptocurrency by market capitalization was down over 4% in the last 24 hours, with trading volume surging 37% to $5.56 billion. XRP fell to an intraday low of $2.98.

Widely followed cryptocurrency analyst and trader Ali Martinez warned that XRP needs to recapture $3.30 to avoid a drop to $2.60 or possibly $2.

See Also: Bitcoin Sets New All-Time High At $124,000 As Record-Breaking Surge Continues

Sell Or Buy?

Meanwhile, the crucial Moving Average Convergence Divergence indicator, which compares two exponential moving averages of price, flashed a "Sell" signal for XRP, according to TradingView. 

The average directional index, used to determine the strength of an asset's trend, also suggested a "Sell."

The Bull Bear Power indicator, which measures the strength of buyers and sellers, showed a "Neutral" reading.

XRP's speculative market still had a bullish bias, with over 77% of Binance traders positioned long as of this writing, according to Coinglass.

The Bullish Triggers

The XRP community has been broadly upbeat after Ripple Labs and the SEC officially ended their years-long legal battle earlier this month. Optimism has also grown over BlackRock’s anticipated application for a spot exchange-traded fund in the coming days.

Price Action: At the time of writing, XRP was exchanging hands at $2.98, down 4.69% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has surged 42%.

Photo Courtesy: mk1one on Shutterstock.com

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