XRP Confronts Critical $2.97–$3 Resistance Zone: Wave 3 Surge or Deeper Correction Ahead?

XRP stands at a technical crossroads that could define its trajectory for months to come.

The Make-or-Break Zone

That $2.97 to $3 resistance wall isn't just another price level—it's the battleground where bulls and bulls decide XRP's next major move. Break through, and we're looking at Wave 3 acceleration toward uncharted territory. Reject here, and a deeper correction becomes inevitable.

Wave Theory in Action

Elliott Wave practitioners see this as textbook Wave 2 completion—either we get the explosive Wave 3 push that makes traders famous, or we get the 'deeper correction' that makes them humble. The charts don't lie, but they also don't promise anything except volatility.

Market Psychology at Play

Every trader watching this zone knows the stakes. Breakout above $3 triggers FOMO that could send XRP parabolic. Failure here fuels the 'overbought' narrative that institutional desks love to exploit for short positions.

Because nothing says 'healthy market' like watching hedge funds manipulate an asset they publicly call worthless while secretly accumulating positions.

Perfect Retest: $2.79 Support Holds Strong

CasiTrades, a crypto analyst, recently shared an update on XRP’s ongoing market structure, pointing out that the backtest of the $2.79 support level was flawless. According to CasiTrades, this was precisely where momentum was expected to re-enter the market, and buyers have indeed shown strength at this zone. She emphasized that the macro 0.5 Fibonacci level is continuing to act as a major support, anchoring XRP during the broader correction phase.

Despite this positive reaction, the analyst cautioned that the market is not entirely clear just yet. While the bounce from support shows encouraging signs, XRP still has work to do to confirm a fully bullish reversal.

CasiTrades explained that for XRP to invalidate the risk of a deeper correction, the price must break and sustain above the $2.97 level. This mark, representing the 0.854 retracement and the bottom of Wave 1, is a crucial barrier that could alter the trajectory of XRP if successfully reclaimed. 

The analyst added that the full confirmation of support WOULD only come if XRP manages to flip the $3.00 level, which aligns with the macro 0.382 Fibonacci retracement range, into a reliable support zone. 

Strength Or Collapse: XRP Market’s Defining Moment

CasiTrades laid out the two potential paths for XRP based on its reaction to the key resistance levels. If the asset successfully breaks above the previously mentioned resistance points, namely $2.97 and $3.00, it would signal a major strength and confirm a new trend for what she refers to as Wave 3 up. This outcome would likely validate the recent rally and suggest that the correction is over.

Conversely, she warns of a potential downside if those resistance levels are not broken. In this scenario, the market could retest the $2.79 support level once again. A more bearish outcome would see the price dip even lower, toward the $2.58 level, which corresponds to the .618 Fibonacci retracement level.

Thus, the crypto analyst concludes by emphasizing the importance of closely monitoring these levels on the RSI (Relative Strength Index) for any signs of exhaustion. The RSI is a momentum oscillator, and watching it in conjunction with the price action could provide early warnings of a potential reversal, helping to confirm whether the trend is strong or if a pullback is imminent.