XRP has recovered from the recent market pullback and is attempting to confirm the $3.00 level as support. However, an analyst suggested that the cryptocurrency risks a new retest of the range lows before bullish momentum continues.
The cryptocurrency retested the range lows, holding the lower boundary as support during the recent market volatility. Now, the price surged 7% from Monday’s lows to the $3.08 area before retracing to the $3.00 mark.
On Wednesday, analyst Ali Martinez noted that XRP was rejected from local resistance, around the $3.10 area, for the third time, which could signal a new correction to the range lows similar to the previous attempts.
If the altcoin fails to hold the current level as support and loses the mid-range area, its price could drop to $2.83, risking a fall below the local range and a deeper correction.
On the contrary, if bullish momentum continues and the cryptocurrency breaks out of the crucial resistance, its price could rally to the August high levels, between $3.20-$3.40.
After its July rally to its latest all-time high (ATH) of $3.65, the altcoin has been consolidating within a bullish pennant, with price compressing between the pattern’s resistance and support levels.
If history repeats, a massive breakout will follow once the altcoin breaks out of the previous ATH resistance and turns it into support.
As of this writing, XRP is trading at $3.02, a 3.3% increase in the weekly timeframe.
