XRP Volumes Soar 112% as Price Shows Bullish Trends Green
Let's Dive into XRP's Latest Price Movement
Over the past day, Ripple (XRP) has seen a bullish spike with its trading volume nearly doubled, according to data from CoinMarketCap. This surge comes as the crypto market as a whole experienced a significant recovery, especially in the early hours of Thursday.
In response, XRP's price followed suit, climbing upwards alongside the volume uptick. This all happened after the U.S. Federal Reserve held its benchmark interest rate at 4.25-4.5% in their meeting on Wednesday, despite cryptocurrency markets initially dropping on the news before rebounding.
Most major tokens, including XRP, have been on the rise following the market rebound, with Bitcoin making a comeback and approaching $100,000 for the first time since February. On this uptrend, XRP surged by around 6%, moving from a low of $2.117 to $2.219, creating a large green daily candlestick.
Further Reach for XRP
Despite this recent improvement, XRP remains around 3.33% up in the past 24 hours but still 1.13% down for the week. As of writing, it's making its way towards $2.2. Notably, 2.17 billion XRP were recorded in trading volume in the last 24 hours, amounting to $4.8 billion—a significant increase of 120%.
Turning Points and Trends
After a prolonged descent from highs of $2.36 on April 28, XRP fell below the daily moving average of 50 on May 4. Although bears tried to push the price down to the $2 support level, they failed. The price touched a low of $2.07 on May 6, but managed to rebound and attempt to reclaim the daily SMA 50 at $2.172.
Thanks to the price jump in the early Thursday session, XRP has once again risen above the daily SMA 50, suggesting that buyers are regaining control and that there might be strengthening confidence in XRP's short-term outlook.
For XRP to secure a $3 mark, it needs to break and close above $2.60. Conversely, if XRP breaks and closes below $2, it might trigger a drop to the $1.72 to $1.61 support level. However, the flat moving averages and an RSI slightly above the midpoint indicate that XRP may remain stuck between $2.60 and $2 for a while before making the next big move.
The current analysis and predictions for XRP price movement indicate a cautiously optimistic outlook, with some mixed signals. According to technical analysis, a breakout above a long-standing descending trendline could be a bullish signal.
At the same time, large transfers of XRP to exchanges by whales suggest potential profit-taking, which might add volatility to the price. However, a declining exchange inflow of XRP is considered favorable as it indicates reduced selling pressure and possible increased holding among investors.
On the upside, some analysts believe that if XRP can hold above the current resistance level, it could retest the $3 mark this month. Long-term forecasts suggest potential for XRP to reach $7 to $10 in the summer, driven by ongoing market optimism and fundamental catalysts.
In summary, while XRP appears poised for potential upside continuation, investors should be mindful of volatility and short-term price fluctuations as the market navigates this phase of recovery and consolidation.
- Investors could potentially see a profit-taking opportunity as whales transfer large amounts of XRP to exchanges, adding volatility to the price.
- A declining exchange inflow of XRP is considered favorable, as it indicates reduced selling pressure and possible increased holding among investors.
- Should XRP be able to hold above the current resistance level, some analysts predict it could retest the $3 mark by the end of this month. Long-term forecasts suggest potential for XRP to reach $7 to $10 in the summer, driven by market optimism and fundamental catalysts.
