The recent price performance of XRP is noteworthy. After reaching an all-time high of $3.66, it has now entered a correction phase, with the trading price hovering around $3.55, showing a weak consolidation trend in the short term.

From a technical analysis perspective, on the 4-hour chart, the XRP price has fallen below the middle band of the Bollinger Bands, indicating a weak short-term trend and may test the lower support at $3.37. The MACD indicator has formed a death cross, suggesting that bearish strength is increasing, and investors should be wary of the possibility of further pullbacks. The RSI indicator has dropped to the neutral zone, reflecting a cautious market sentiment, and if it falls below 50, it may accelerate the downward movement.

For key support levels, investors should focus on the range of $3.37-$3.40. If it can stabilize in this range, low-position buying may be considered. $3.30-$3.32 is a secondary support, while $3.25 is a key defense level; if it falls below this level, a stop-loss may need to be considered. The resistance level above is at $3.60, and if it can break through, there may be an opportunity to challenge $3.80.

In terms of trading strategy, short-term traders may temporarily wait and observe, waiting for the price to pull back to the range of 3.37-3.40 USD and confirm support before considering establishing long positions. Stop-loss can be set below 3.25 USD. If it can steadily stay above 3.60 USD, one can follow up with long positions, targeting 3.80 USD.

It is worth noting that there are also some positive factors in the market. The passage of cryptocurrency-related legislation in the United States has made the regulatory environment clearer, which helps boost market confidence. In addition, the rising expectations for the XRP futures ETF may attract more institutional funds, supporting a bullish sentiment in the medium to long term.

However, investors should also be wary of potential risks. The RSI indicator is in the overbought zone, and there may be a demand for correction in the short term; selling pressure from profit-taking may suppress prices.

Overall, the current market trend for XRP is mainly a fluctuation and retracement. As long as it holds above the 3.25 USD level, a relatively optimistic bullish outlook can still be maintained. However, if it falls below this level, caution is warranted. In the upcoming trades, investors should closely monitor the effectiveness of the 3.40 USD support level and whether it can break through the 3.60 USD resistance level, as this will determine the direction of the short-term trend.