 ▲ XRP |
XRP’s upward momentum has cooled after hitting a strong resistance level at $1.40, with intense buying and selling battles continuing as the market seeks to secure support.
According to crypto media outlet NewsBTC on March 6 (local time), analyst Sam Daodu said in a recent report that although XRP attempted a rebound by reclaiming the $1.40 level, short-term profit-taking pressure pushed the token back into a sideways trading range. Daodu assessed that XRP now stands at a critical inflection point between the psychological support level of $1.30 and resistance at $1.50, awaiting a catalyst that will determine the market’s next direction.
On-chain data analysis shows that approximately 443 million XRP were heavily accumulated around the $1.27 level, establishing it as a key support zone that provides strong downside protection. Daodu explained that many investors view the $1.27 range as an attractive entry point, with buying interest flowing in whenever the price approaches that level, thereby defending the $1.30 mark. However, he noted that a decisive breakout above the $1.50 double-bottom neckline, accompanied by a firm weekly candle close, is necessary to confirm a full-fledged shift into a bullish trend.
Bitcoin (BTC) price volatility has been identified as the most significant factor determining XRP’s trajectory, with the current correlation coefficient between the two assets standing at a high 0.84. Although Bitcoin has regained the $70,000 level, stimulating broader risk-on sentiment across the market, XRP tends to amplify Bitcoin’s movements by roughly 1.8 times, warranting caution. Daodu projected that if Bitcoin maintains stable momentum around $73,000, XRP is likely to attempt another breakout above the $1.50 resistance level.
In the macroeconomic landscape, geopolitical tensions in the Middle East and the actions of U.S. President Donald Trump are contributing to heightened market uncertainty. Nevertheless, steady capital inflows into spot crypto ETFs managed by institutions such as Bitwise and Canary Capital indicate that long-term institutional confidence remains intact. In particular, progress on U.S. cryptocurrency market structure legislation aimed at enhancing regulatory clarity is interpreted as a positive signal that could accelerate XRP’s integration into the institutional financial system.
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