In the wake of a significant market downturn, all eyes are on XRP as it experiences an unexpected and impressive recovery. After a sharp 35% drop in the past 48 hours, the digital asset has surged over 55%, forming one of the largest bullish candles in the past two years. This remarkable reversal has positioned XRP as one of the top performers in a struggling market.
XRP’s Rally and Market Sentiment Shift
XRP’s sharp rise comes on the back of a surprising development in the global economic landscape. Pro-crypto U.S. President Donald Trump recently announced a pause on the tariff imposed on Mexico, via his X account. This move sparked a wave of optimism, boosting investor confidence in the broader cryptocurrency market. Alongside XRP’s recovery, Bitcoin (BTC) also saw a 12% price reversal in the last 12 hours, signaling a potential market-wide recovery.
Inflow of $80 Million Signals Profit-Taking Pressure
Despite XRP’s bullish move, there is some caution. On-chain analytics from Coinglass reveal that long-term holders and whales, who previously bought the dip, are now selling their XRP holdings on exchanges. Over the past 24 hours, exchanges have seen an influx of more than $80 million worth of XRP, raising concerns about potential profit-taking and selling pressure. This could dampen the upward momentum and contribute to price fluctuations in the short term.

XRP Technical Analysis and Key Resistance Levels
Technical analysis suggests that XRP’s bullish momentum may continue if it manages to close above key resistance levels of $2.70 or $2.65. Such a close could signal a potential breakout and possibly lead to a new all-time high. The Relative Strength Index (RSI) currently sits at 44, indicating that there is still ample room for upside movement, offering a glimmer of hope for bullish traders looking for further gains.

In conclusion, while XRP’s rally is impressive, traders should keep an eye on key technical levels and monitor market sentiment for any signs of resistance or profit-taking that could affect its trajectory.
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.
Also Read: XRP Soars 13% in 24 Hours, But Will This Rally Last? Key Indicators Suggest a Short-Lived Surge