XRP has been in the spotlight once again, with traders debating whether the recent rebound is a genuine recovery or simply a setup for a larger correction. The XRP price is currently trading around $3.28, testing a key resistance zone after several volatile sessions. While analysts warn that a sell-off could push prices below $3, whale activity suggests that the story might not be so straightforward.
XRP Price Action: Key Resistance at $3.28
The XRP daily chart shows that the price has recovered from early August lows near $2.80, climbing back to test the $3.28–$3.30 resistance zone. This area has acted as both support and resistance in recent months, making it a pivotal level for short-term sentiment.
Source: Trading View
Trading volume remains steady at around 27 million, indicating sustained interest. However, momentum indicators such as the RSI are hovering near neutral territory, hinting at potential consolidation before a decisive move.
Whale Behavior Raises Questions
Despite fears of a sell-off, on-chain data reveals that large XRP holders – often referred to as “whales” – have been quietly increasing their positions. Historically, such accumulation phases have preceded major bullish reversals, as whales often use periods of fear to secure cheaper entries.
Some analysts suggest that whales could be setting a trap, allowing retail investors to panic-sell before absorbing the liquidity and driving the next leg higher.
Short-Term Bearish Risks Remain
While whale accumulation offers a bullish counterpoint, it doesn’t erase the immediate risks. The $3.00 level remains a crucial short-term support, and a daily close below it could trigger stop-loss cascades, accelerating downward momentum.
A deeper correction could push XRP towards the $2.80 zone, where previous buying interest emerged in late July. Below that, the next major support is around $2.50 – a level that could attract more aggressive long-term buyers.
Macro Factors at Play
Global risk sentiment is also influencing crypto markets. The U.S. dollar’s recent strength, combined with mixed regulatory headlines, has kept investors cautious. Additionally, uncertainty in the broader altcoin market has prevented XRP from breaking decisively above $3.30.
However, if Bitcoin maintains stability above $120K, it could provide the macro tailwind needed for XRP to retest the $3.60 zone its most recent high.
Bullish Case: The Trap Scenario
The bullish scenario centers on the idea that current price weakness is manufactured to shake out weaker hands. If whales are indeed accumulating, we could see a sudden breakout above $3.30, which would likely trigger a wave of short-covering.
Such a move could push XRP back towards $3.50–$3.60 in the short term, with longer-term targets above $4 if market momentum accelerates.
Final Thoughts: What This Means for XRP Holders
The next few days will be critical for XRP. The market is currently at a crossroads, with the $3.28 resistance and $3.00 support acting as the battle lines.
If the bearish view plays out, a drop below $3 could offer long-term investors another entry opportunity. On the other hand, if whales are indeed engineering a trap, we could see an explosive rally that catches many off guard.
For now, traders should watch key price levels closely and be prepared for volatility. Whether this is the start of a deeper correction or the setup for the next major move, XRP remains one of the most closely watched assets in the crypto market.
