XRP Faces Crucial $3 Barrier as Bulls Eye All-Time Highs

XRP Faces Crucial $3 Barrier as Bulls Eye All-Time Highs

Momentum Builds as Open Interest Hits $8.11B and Price Action Eyes Breakout

XRP is back in the spotlight after a dramatic rally pushed the token to multi-month highs above $3, only to meet heavy resistance at that psychological level. Analysts warn that a failure to flip $3 into support could stall the rally—or worse, spark a significant correction.

As of Tuesday, XRP was trading at $2.80, down 7.6% intraday after a strong 33% surge from July 8 through Monday. The retracement has raised concerns among traders, as $3 continues to act as a historical barrier with considerable implications for future price action.

$3 Resistance Defines the Battle Line for XRP Bulls

According to market analyst CasiTrades, the $3 level aligns with the macro 0.118 Fibonacci retracement from XRP’s prior all-time high of $3.40, making it a technically critical zone.

“Reclaiming $3 would be a massive signal that Wave 3 is alive and accelerating,” said CasiTrades on X.

If XRP clears this level and retests it as new support, a rapid move toward $3.40 and beyond could follow.

“Once $3.40 breaks, it will likely shock people how quickly this runs,” the analyst added. “Expect it to be incredibly fast and volatile.”

History Warns of Reversal Below $3

This isn’t the first time XRP has struggled to break through $3. In March, a similar rejection from that level was followed by a 46% decline, dropping to $1.61 by April 7. Traders now view $3 as both a breakout point—and a trapdoor if bulls fail to hold it.

Liquidation Clusters Suggest $3.04–$3.14 Could Be Flashpoints

Data from CoinGlass’s XRP/USDT liquidation heatmap shows a dense concentration of leveraged short positions between $3.04 and $3.14. These zones are prime territory for liquidation squeezes, where shorts are forced to cover, accelerating upward price moves.

Should XRP breach $3.04, it could trigger a cascade of liquidations pushing price to $3.14 or higher in a short timeframe.

Futures Open Interest Soars to $8.11 Billion

Supporting this bullish potential is a sharp increase in leveraged positioning. Aggregate open interest (OI) on XRP futures has climbed 121% since June 23, reaching $8.11 billion—just shy of the all-time high $8.33 billion set on January 19.

This surge in OI suggests strong trader conviction, but it also raises the risk of forced liquidations if the price moves sharply in either direction.

Conclusion

With $8.11 billion in futures open interest, heavy liquidation zones above $3.04, and a historical resistance line at $3, XRP’s next move could be explosive. A confirmed breakout could rapidly propel prices beyond $3.40, while another rejection could reopen the door to steep losses.