Key Insights
- XRP has risen by less than 1% and is currently trading above $2.00.
- The cryptocurrency could climb toward $2.20 in the short term.
XRP recovers as selling pressure eases
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) began the new week with modest gains as they rebounded from last week’s sharp correction. These three major cryptocurrencies are trading above key support levels, suggesting the recovery may continue.
However, the market remains fragile and the downtrend could resume. XRP lost around 10% of its value last week as the broader crypto market liquidated more than $1 billion in leveraged positions within hours.
Mass liquidations coincided with Bitcoin dipping toward $81,000 while XRP failed to hold above $2.00. Ether also slipped below $3,000 for the first time in several months.
Despite that, the market shows signs of stabilization, and XRP could edge higher in the short term. Market inefficiencies across multiple timeframes may support a temporary upswing.
XRP bounces as $1.96 support holds
The XRP/USD 4-hour chart remains bearish and dislocated after last week’s abrupt decline. XRP was rejected at the 50-day EMA near $2.38 on November 13 and lost about 19% over the following eight days, bottoming at $1.82 on Friday.
The token has recovered somewhat after testing its daily support just above $1.90 over the weekend. At the time of writing, XRP is trading above $2.05 per coin.
The 47 reading on the RSI sits close to the neutral 50 level, indicating downward momentum is easing and supporting the case for a rebound. The MACD lines are also converging toward a bullish crossover.
If the recovery continues, XRP could target the next significant resistance around $2.35 in the coming hours or days. Conversely, if another correction unfolds, XRP may retest Friday’s low near $1.82 in the short term.