Key points
- XRP has risen by just under 1% and is now trading above $2.
- The cryptocurrency could climb back toward the $2.20 level in the short term.
XRP recovers as selling pressure eases temporarily
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) started the new week on a positive note, each bouncing slightly after last week’s sharp correction. These three major cryptocurrencies are trading above key support levels, which points to a potential continuation of the recovery.
Still, market sentiment remains fragile and the broader downtrend could resume. XRP lost roughly 10% of its value since last week as the crypto market as a whole saw more than $1 billion in leveraged positions liquidated within hours.
Those large liquidations occurred while Bitcoin slid toward $81,000 and XRP failed to hold above $2.00. Ether also fell below $3,000 for the first time in months.
Despite these losses, signs of stabilization are emerging and XRP may see a short-term bounce. Multiple timeframes show areas of inefficiency in price, which can fuel a temporary rally as traders fill gaps and cover short positions.
XRP steadies with $1.96 support intact
The 4-hour XRP/USD chart remains bearish and shows inefficiencies created by last week’s sudden drop. Price was rejected by the 50-day EMA at $2.38 on November 13 and then fell about 19% over the following eight days, reaching a low of $1.82 on Friday.
XRP staged a modest rebound after retesting its daily support level above $1.90 over the weekend. At the time of writing, XRP is trading above $2.05 per coin.
A Relative Strength Index (RSI) near 47 sits close to the neutral 50 line, indicating that downward momentum is easing and supporting a recovery scenario. MACD lines are also converging toward a bullish crossover.
If the recovery continues, XRP could climb toward the next major resistance near $2.35 within hours or days. Conversely, if selling resumes, XRP may retest last Friday’s low of $1.82 in the short term.