Key takeaways
- XRP rose by less than 1% and is currently trading above $2.00.
- The cryptocurrency could climb toward the $2.20 level in the near term.
XRP bounces after a temporary halt to the sell-off
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) have started the new week on a positive note, edging up after last week’s sharp correction. All three leading cryptocurrencies are trading above key support zones, which points to a possible continuation of the recovery.
Market sentiment, however, remains fragile and the downtrend could resume. XRP lost roughly 10% of its value since last week when the broader crypto market saw more than $1 billion in liquidations within a few hours.
Large liquidations occurred as Bitcoin fell toward the $81,000 area and XRP failed to hold above the $2.00 mark. Ether also slipped below $3,000 for the first time in months.
Despite this, the market is showing signs of stabilization and XRP may post a short-term rebound. Several timeframes look inefficient after the sudden drop, creating space for a temporary rally.
XRP recovers while support at $1.96 holds
The 4-hour XRP/USD chart remains bearish and shows inefficiencies following last week’s sharp decline. XRP’s price was rejected by the 50-period EMA at $2.38 on November 13 and lost about 19% over the next eight days, bottoming at $1.82 on Friday.
The token staged a modest recovery after retesting the daily support area above $1.90 over the weekend. At the time of writing, XRP is trading above $2.05 per coin.
The RSI sits near 47, close to the neutral 50 mark, suggesting downward momentum has weakened and supporting the case for a rebound. MACD lines are also approaching a bullish cross.
If the bounce holds, XRP could climb toward the next significant resistance near $2.35 over the coming hours or days. Conversely, if selling pressure returns, the token may retest Friday’s low around $1.82 in the short term.