Date: Thu, Jan 02, 2024, 05:30 AM GMT
The cryptocurrency market is showing signs of recovery today, rebounding from its correction phase that began last month. Bitcoin (BTC), which recently dropped to a low of $92,000 on December 31, has now recovered to its current level above $95,000.Amid this market-wide correction, XRP experienced a pullback after its impressive rally in November. Its monthly gains have now narrowed to 13%, mirroring the broader market's consolidation.
However, $XRP is once again gains momentum with a strong bounce, registering a double-digit rally of over 10% and currently trading at $2.37.
Source: Coinmarketcap
Bounce from Key Support
XRP’s recent decline was primarily due to a rejection at the $2.90 resistance level—the upper boundary of a symmetrical triangle pattern, as illustrated in the chart. This rejection led to a retracement, testing the triangle's lower support level of triangle multiple times.
Today, XRP has managed a strong rebound from the $2.00 support zone, pushing its price to the current level of $2.38. It is now approaching the triangle's upper resistance near $2.49.
XRP 4H Chart Analysis/ Coinsprobe
The technical indicators are signaling potential bullish momentum for XRP. The MACD (Moving Average Convergence Divergence) has displayed a bullish crossover, indicating that upward momentum could be building.
Additionally, the RSI (Relative Strength Index) has risen above the 50-level mark, suggesting improving strength among buyers and a possible continuation of the upward trend.
What’s Next for XRP?
If XRP continues its upward trajectory, it could retest the symmetrical triangle's upper resistance around $2.49. A decisive breakout above this level might trigger further bullish momentum, with the next significant target at $2.90. Beyond $2.90, XRP could aim for new highs if market conditions remain favorable.
However, failure to breach the resistance could result in another pullback, potentially retesting the support level of triangle. Traders should remain cautious and watch the price action closely within the triangle formation.
Conclusion
XRP’s ability to hold its key support level at $2.00, coupled with bullish signals from the MACD and RSI, suggests that a recovery is on the horizon. A breakout above $2.49 could pave the way for a renewed rally, but traders should remain vigilant for any signs of weakness that might lead to further downside.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
