XRP, the native currency of the Ripple network, is regaining strength, with solid support at the $2.80 mark. It leads to speculation of a future rally to new annual highs. Speculators and commentators are suggesting that the recent price action is a classic bullish retest. A technical phenomenon that often signals another leg higher in trending markets.
The digital currency space has been highly unpredictable over the past few weeks, with Bitcoin stabilizing around $64,000 and Ethereum floating around $3,200. Against the general uncertainty, XRP’s strength at a key technical level has attracted more interest from investors for top altcoin performers.
XRP bounced from $2.15 in the prior month to $3.10, after getting into a consolidation phase. A correction of the token into the $2.80 area triggered heavy buying interest. Now, the bulls are not ready to relinquish control just yet.
The relative strength index (RSI) stays in neutral territory near 58. Here, it leaves space for further upside unannounced overbought conditions. The daily chart’s moving averages indicate XRP holding above its 50-day simple moving average. It gives a dynamic support level.
“$2.80 is turning into a crucial spot for XRP. If the level is maintained, the likelihood of a break higher than $3.20 and perhaps touching $3.50 is strong,” added Marcus Nolan, crypto markets analyst at FXEdge Research. “The bullish retest verifies good buying demand, and the setup is positive for another leg up.”
Sentiment is shifting in favor of XRP in the wider altcoin market, as there is renewed institutional interest. It is, especially since Ripple is broadening its collaboration in cross-border payments.
There has recently been fresh enthusiasm for the token’s long-term adoption. It also follows Ripple’s announcement of cross-border payment pilot programs with Asian and Middle Eastern banking institutions.
On-chain data also gives credence to the bullish argument. Wallet addresses between 100,000 and 1 million XRP have seen positive increases in balances over the last two weeks. It is a positive indicator of accumulation by mid-level whales, notes analytics firm Santiment. There are active addresses per day on the XRP Ledger, which has also grown by 12% since August. Here, it shows advanced network usage.
XRP’s move is occurring within the backdrop of a growing crypto space. Bitcoin’s dominance remains at 48%, so there is still room for altcoins to take more market share. Traders refer to where XRP has in the past had outsized moves whenever trust is restored in the altcoin sphere.
Analysts are still cautioning that macroeconomic factors could influence short-term price action. Risk-sensitive assets like cryptocurrencies may experience spillover effects if macro conditions worsen.
At present, the key level to watch is $2.80. As long as XRP holds this line and builds strength. There may be a near-term resistance retest at $3.20, targeting $3.50 and $3.80 thereafter. A break below those levels would take XRP to its highest price in almost two years, dating from its parabolic run in early 2021.
The coming weeks are decisive in determining whether XRP’s $2.80 support sparks the next leg of its bullish journey for traders and long-term investors.
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