XRP has experienced a notable 13% surge in the past 24 hours, benefiting from a broader market recovery following a recent downturn. This rebound comes after concerns over tariffs announced by former U.S. President Donald Trump on Canada, Mexico, and China caused a temporary market dip. However, with Trump postponing the 25% tariffs on Canada and Mexico for 30 days, market sentiment has improved, reigniting trader interest in cryptocurrencies.
Despite this rally, caution surrounds XRP’s recent price movements. On-chain and technical indicators point to potential weaknesses that could signal a short-lived surge. One of the key warning signs is XRP’s declining trading volume. Currently, the total trading volume stands at $22.39 billion, but it has dropped by 22% in the past 24 hours. When an asset’s price rises while trading volume decreases, it suggests that the rally lacks strong buying momentum, making it vulnerable to a price reversal.
Additionally, XRP’s negative Balance of Power (BoP) reinforces concerns of a bearish outlook. At -0.57, the BoP indicates that sellers continue to exert greater influence over the market, despite the recent uptick in price. This suggests a dominant bearish sentiment, which increases the likelihood of a trend reversal and raises doubts about the sustainability of XRP’s rally.
Looking ahead, the future of XRP’s price remains uncertain. As of writing, XRP is trading at $2.57, marking a 45% increase from Monday’s low of $1.77. However, if market conditions shift and demand for XRP remains weak, the token could lose its recent gains, potentially dropping to $2.13. A further decline below the $2 support level could send XRP toward $1.48, the low last seen in November. On the other hand, a resurgence in demand could push XRP’s price higher, with the potential to test the $2.94 resistance.
In conclusion, while XRP’s recent rally is noteworthy, its sustainability depends on strong demand and market conditions. Without these factors, the surge may be short-lived.
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 Crashes 26% as Whales Dump 130M Tokens—Will the Sell-Off Continue?
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