Key takeaways
- XRP rose by less than 1% and is now trading above $2.00.
- The cryptocurrency could climb toward $2.20 in the short term.
XRP rebounds as selling pressure eases temporarily
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) started the new week on a positive note, recovering slightly after last week’s steep correction. These three leading cryptocurrencies are currently trading above key support levels, which suggests a continuation of the recovery.
Market sentiment, however, remains fragile and the downtrend could resume. XRP lost roughly 10% compared with last week as the broader crypto market liquidated over $1 billion in leveraged positions within a few hours.
The large liquidations occurred as Bitcoin slid toward $81,000 while XRP failed to hold above the $2.00 mark. Ether also dipped below $3,000 for the first time in months.
Despite this volatility, the market is showing early signs of stabilization and XRP may advance in the short term. Price action is currently inefficient across multiple timeframes, which can create opportunities for a temporary bounce.
XRP recovers while the $1.96 support level holds
The 4-hour XRP/USD chart remains bearish and technically inefficient after last week’s sharp decline. XRP was rejected by the 50-period EMA at $2.38 on November 13 and fell about 19% over the following eight days, reaching a low of $1.82 on Friday.
The token 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.
A 47 RSI sits near the neutral 50 level, indicating bearish pressure is easing and supporting a recovery outlook. MACD lines are also converging and approaching a potential bullish crossover.
If the rebound continues, XRP could move toward the next major resistance around $2.35 within hours or days. Conversely, a renewed correction could see the price retest Friday’s low near $1.82 in the short term.