XRP Technical Analysis: Break Below $3.40 Opens Path for Decline

Key takeaway: A drop below the $3.40 level on the XRP/USDT chart may signal vulnerability and pave the way for further losses targeting the $3.00 support zone.

Price Action Review

XRP (XRP) surged to a multi-year peak above $3.66 recently, driven by strong buyer interest that briefly lifted its market cap past McDonald’s. However, this momentum failed to sustain, prompting potential profit-taking among short-term bulls.

XRP/USDT daily chart showing price pullback below $3.40 — XRP/USDT daily chart. Source: Cointelegraph/TradingView

XRP’s failed attempt to breach the $3.66 resistance threshold triggered a correction. The XRP/USDT pair is now trading below the $3.40 psychological关口水平关口水平.

Technical Levels

Critical support levels to monitor:

$3.00: A foundational support zone. A holding pattern here might buffer deeper losses.
$2.80: Downside target for sellers if resistance at $3.00 is breached.
$2.60: Further downside if sentiment turns bearish again.

A decisive warning sign for bulls would be a break below the short-term 20-day Exponential Moving Average (EMA) around the $2.99-$3.00 level. Such an indicator could signal a potential bearish reversal pattern.

Conversely, a strong recovery from recent lows near $2.90-3.00 could be interpreted as a sign the corrective phase is concluding, potentially leading to another test of the $3.66 threshold. Reaching this would require pushing past the previous resistance.

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