XRP has been experiencing turbulent price action, currently trading around $2.50. After an initial spike followed by a sharp drop, the altcoin has regained its footing and is now on an upward trajectory. This gradual climb is fueling speculation about a potential extended bull run, reminiscent of its surge in 2021. Analysts remain watchful, evaluating whether XRP can maintain its momentum in the coming weeks.
Massive Gains Post-Election
Since the U.S. election, XRP has skyrocketed by 375%, outpacing many cryptocurrencies in the market. This surge has been accompanied by a notable increase in active XRP wallets, which have spiked by 620% in the past week. This influx of new investors signals growing confidence in XRP’s future performance.
Meanwhile, the broader cryptocurrency market is showing signs of recovery. The market’s Fear and Greed Index has climbed to 30, indicating a shift toward optimism. Bitcoin’s dominance remains steady at 60%, while the overall market capitalization has surged to $3 trillion, reinforcing bullish sentiment across altcoins.
Bearish Divergence Raises Concerns
Despite the strong gains, XRP is flashing a bearish divergence on the 3-day chart, according to analyst Josh of Crypto World. This divergence suggests that while short-term price action remains volatile, a significant rally akin to November’s surge is unlikely in the immediate future. Traders are advised to proceed with caution, as price fluctuations could persist before a decisive breakout occurs.
Key Support and Resistance Levels
XRP is currently holding above a critical support range between $2.25 and $2.30. If bullish momentum continues, the next major resistance levels to watch are between $2.65 and $2.80, with additional hurdles at $3 and $3.20. A decisive move above these levels could validate a sustained uptrend, while failure to break through may result in consolidation or a pullback.
The Relative Strength Index (RSI) recently entered overbought territory before resetting after a pullback. Currently, the RSI is in a neutral position, suggesting that XRP could experience sideways movement in the short term. Should Bitcoin and other major altcoins stabilize, XRP is likely to follow suit with choppy trading patterns.
Also Read: XRP Price Surges 5%—Analysts Predict a Massive Rally to $222 Amid Bullish Signals
As XRP continues to navigate market uncertainty, traders should keep an eye on resistance levels and broader market trends to assess its next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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