XRP is showing signs of a double bottom pattern, a potential bullish signal, but bearish pressure still remains. According to our analysis, $3 support level is key, as XRP continues to hold above it despite market uncertainty. However, weakening on-chain metrics could put pressure on buyers, potentially causing them to lose momentum and increasing the risk of a selloff.

XRP Records Its Best Month

July has been the strongest month for XRP so far, with the price seeing major gains following several market updates. Data from CoinMarketCap shows that XRP surged over 41% in the past 30 days, holding steady above the important $3 support level.

According to Coinglass, XRP faced a wave of liquidations in the last 24 hours. The total value of these liquidations was more than $17.5 million, with nearly $13 million coming from long positions, as buyers exited following a rejection around the $3.2 mark, leading to a selloff.

Open interest for XRP dipped slightly, down 0.16%, now standing at $8.46 billion. Despite this small decline, the funding rate remains positive at 0.0092%, suggesting that traders still lean toward a bullish outlook even though bearish pressure is growing.

Also read: Solana, Sui Could 20x Soon as Analyst Says ‘It’s Altcoin Time Now’

Over the past week, monthly XRP futures have been consistently trading at a 6% to 8% premium, which shows that market sentiment remained stable during the $3 price retest. Even when XRP briefly moved above $3.6, there was no sharp rise in demand for leveraged long positions.

Some of the recent buying demand around XRP also comes from speculation about a U.S.-approved spot ETF. If approved, it could positively impact other altcoins as well, including Litecoin, Solana.

What’s Next for XRP Price?  

XRP is currently facing strong competition between buyers and sellers around the 20-day simple moving average (SMA) at $3.1. As of writing, XRP price trades at $3.08, declining over 1.5% in the last 24 hours.

Looking at the XRP price chart, bears repeatedly failed to establish a foothold below $3, the 38.2% Fibonacci retracement. The price action, when viewed on the hourly chart, suggests a double bottom formation at $3, with the neckline resistance at $3.334 (the July 28 high).

If the price drops below the $3.05 support level, it could fall further to around $2.95. Buyers are likely to defend this level strongly, as a break below it might lead to a deeper decline toward $2.8.

On the other hand, if XRP bounces back from $3, it would show strong buying interest at lower levels. While the 20-day SMA may act as resistance during the recovery, if bulls manage to push through, the XRP/USDT pair could rise to $3.33 and possibly even reach $3.7.

The RSI level has bounced back strongly, currently trading at 46 level. Though it holds below the midline, buyers are confident enough to send the price toward $3.3 retest.