XRP Could Rebound with Key Support at $3—Potential to Hit New Year Highs

I believe XRP still maintains a chance for recovery if it can sustain the critical $3 support level. After experiencing a prolonged decline, the current price action shows a tug-of-war between bearish and bullish signals. This fluctuation around significant Fibonacci retracement levels indicates potential for a rebound, provided that XRP can reclaim and hold above the $3 mark. The recent failure to rally significantly after briefly crossing above $3 suggests that the upward move was merely corrective within a larger bearish trend, which is a concern for traders. The support at $2.75, aligning with the 0.5 Fibonacci retracement, is pivotal. If XRP holds above this level, it hints at a possible bullish divergence on multiple timeframes, suggesting a bottoming pattern. As long as the low remains above the Wave 1 high of $2.65, the overall outlook remains cautiously bullish, with the expectation that the current correction could be the final dip before a substantial rally. The importance of reclaiming $3 cannot be overstated, as breaking above $3.21 and confirming that breakout would be a bullish signal, likely initiating a strong impulse wave. If XRP successfully surpasses this resistance, targets of $4 and then $4.60-$4.80 are feasible, potentially marking new all-time highs not seen in over seven years. This scenario depends heavily on sustained buying momentum and confidence from key support levels, which could signal a trend reversal from bearish to bullish. Investors should watch the $3 resistance closely as it could serve as the catalyst for a significant upward move, with considerable upside potential in the upcoming bullish cycle.