Key points
- XRP is up slightly, trading above $2 after a rise of less than 1%.
- The cryptocurrency could climb toward the $2.20 area in the short term.
XRP recovers as the sell-off temporarily pauses
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) start the new week on a positive note, bouncing back modestly after last week’s sharp correction. These three leading cryptocurrencies are trading above key support levels, suggesting the recovery may continue.
Market sentiment remains fragile, however, and the downtrend could resume. XRP lost roughly 10% since last week when the wider crypto market liquidated over $1 billion in leveraged positions within a few hours.
Those massive liquidations occurred as Bitcoin dropped toward $81,000 and XRP failed to hold above $2.00. Ether also slipped below $3,000 for the first time in several months.
Despite the volatility, the market is showing signs of stabilization and XRP may trend upward in the near term. Multiple timeframes are showing inefficiencies, which can produce a temporary rebound.
XRP recovers as the $1.96 support level holds
The XRP/USD 4-hour chart appears bearish and disorderly after last week’s sudden decline. Price was rejected by the 50-period EMA at $2.38 on November 13 and subsequently lost about 19% over the next eight days, reaching a low of $1.82 on Friday.
The token has recovered slightly after testing daily support around $1.90 over the weekend. At the time of writing, XRP trades above $2.05 per coin.
The RSI sits near 47, close to the neutral 50 level, indicating bearish pressure is easing and supporting a potential recovery. MACD lines are also approaching a bullish crossover.
If the rebound continues, XRP could move toward the next major resistance near $2.35 within hours or days. If another correction occurs, the token could retest Friday’s low at $1.82 in the short term.