Key takeaways
- XRP is up by less than 1% and is now trading above $2.
- The cryptocurrency could rally towards the $2.2 level in the near term.
XRP recovers as selloff temporarily halts
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) begin the new week positively as they slightly recover from last week’s massive correction. These top three cryptocurrencies are currently trading above their key support levels, suggesting recovery continuation.
Despite that, the market sentiment remains fragile, and the bearish trend could continue. XRP has lost 10% of its value since last week as the broader crypto market liquidated over $1 billion worth of leveraged positions within hours.
The massive liquidations came as Bitcoin dropped towards the $81k level, while XRP failed to hold its value above $2.0. Ether also dropped below $3k for the first time in months.
However, the market is showing signs of recovery, and XRP could rally higher in the near term. Currently, the market is inefficient on several timeframes, and this could result in a temporary rally.
XRP recovers as the $1.96 support level holds
The XRP/USD 4-hour chart is bearish and inefficient thanks to XRP’s sudden dump last week. XRP’s price faced rejection from the 50-day EMA at $2.38 on November 13 and lost 19% of its value in the following eight days, hitting a low of $1.82 on Friday.
The cryptocurrency has rebounded slightly after retesting its daily support level above $1.9 over the weekend. At press time, XRP is trading above $2.05 per coin.
The RSI of 47 is close to the neutral 50, suggesting that bearish pressure is easing and supporting a recovery view. The MACD lines are also closing in on the bullish crossover.
If the recovery continues, XRP could rally towards the next major resistance around $2.35 over the next few hours or days. However, if XRP undergoes another correction, it could retest the Friday low of $1.82 in the near term.