Key insights
- XRP has risen by less than 1% and is now trading above $2.
- The cryptocurrency could climb toward the $2.20 level in the short term.
XRP recovers as selling temporarily eases
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) have started the new week on a positive note as they recover somewhat from last week’s sharp correction. These top three cryptocurrencies are trading above key support levels, which suggests a continuation of the recovery for now.
That said, market sentiment remains fragile and the broader bearish trend could resume. XRP lost around 10% of its value last week after more than $1 billion in leveraged positions were liquidated across the crypto market within a few hours.
The mass liquidations occurred as Bitcoin fell toward the $81,000 area while XRP failed to hold above $2.00. Ether also dipped below $3,000 for the first time in months.
Despite that volatility, the market is showing early signs of a rebound and XRP may push higher in the short term. Multiple timeframes show inefficiencies that can fuel a temporary rally.
XRP rebounds while $1.96 support holds
The XRP/USD 4-hour chart remains bearish and shows inefficiencies following last week’s sudden drop. Price was rejected at the 50-day EMA at $2.38 on November 13 and lost 19% over the next eight days, bottoming at $1.82 on Friday.
The token has staged a modest recovery after retesting daily support above $1.90 over the weekend. At the time of writing, XRP is trading above $2.05 per coin.
The RSI at 47 sits near the neutral 50 level, indicating that bearish pressure is easing and supporting a recovery outlook. The MACD lines are also approaching a bullish crossover.
If the recovery continues, XRP could rise over the coming hours or days toward the next major resistance around $2.35. However, if selling resumes, XRP may retest last Friday’s low of $1.82 in the short term.