XRP Price Consolidation Above Support – A Ripple Rebound on the Horizon?
Despite Ripple has been declining this week, it is looking stronger than BTC, with XRP trading close to $1.20, while buyers are looking to reenter the market.
XRP Price Decline and Recovery
On Tuesday, Ripple’s price dropped to $2.06, marking a 35% decline from its mid-January peak of $3.40. However, strong buying interest above the $2 support level helped stabilize the price, leading to a recovery. By the end of the day, a bullish hammer candlestick pattern formed, indicating potential reversal.
Market Sentiment and Bitcoin’s Influence
Despite this positive signal, bullish momentum failed to gain traction as overall market sentiment remained negative. Bitcoin, experiencing its worst three-day decline in three years, fell below $83,000 due to nearly $1 billion in withdrawals from US spot ETFs. Compared to Bitcoin’s sharp decline, XRP/USD held a more stable position, consolidating around $2.20.
Key Resistance Levels and Price Targets
For XRP to resume its upward trend, it must overcome key resistance levels:
- 100-day SMA (green): Previously acted as support.
- $2.80 (50-day SMA, yellow): Serves as resistance.
- $3.00: Psychological round number.
- $3.40 (All-time high): Ultimate target for an upward breakout.
Major Development: Institutional DeFi on XRPL
Ripple Labs has introduced a groundbreaking proposal to create an institutional-grade decentralized finance (DeFi) ecosystem on the XRP Ledger. This initiative includes:
- A multi-purpose token (MPT) standard for financial institutions.
- A permissioned decentralized exchange (DEX) for regulated trading.
- A credit-based DeFi lending platform tailored for institutional use.
This marks one of the most significant advancements for XRP since Ripple’s founding in 2013, signaling strong long-term growth potential.
Ripple XRP Live Chart
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