XRP trades at $2.34, a few cents shy of its low at $2.17 earlier on Thursday. Current price suggests that the asset is recovering from the previous declines it experienced the previous day.
On Wednesday, the crypto market had another shakedown that resulted in losses exceeding 10%, dipping to $3.52 trillion. Ripple’s native coin saw massive declines, dipping from $2.60 to a low of $2.24.
The sudden dip surprised many as it happened barely a day after the cryptocurrency’s significant surge. XRP gained almost 3% on Tuesday, recovering from an earlier slight descent. The asset dipped to a low of $2.44 and peaked at $2.72 afterward.
The altcoin’s sudden uptick marks a breakout from its previous pattern of small volatility. It struggled to register any significant change since its massive decline last week. Nonetheless, it continues its uptrend amidst slight FUD.
The latest surge was unsurprising, as XRP’s recent price surge coincided with Bitcoin’s. The apex coin attained another ATH, surging from $106,100 to $108,364. Both surged as the market saw renewed interest from investors in the last stretch before the holidays.
The third-largest cryptocurrency also benefited from a significant event in its ecosystem. Ripple announced the launch of its stablecoin on several exchanges, including MoonPay, Uphold, CoinMENA, and two others. The company created much buzz around this launch, and its native coin was a top gainer.
Why the Dip?
XRP started losing momentum after it peaked at $2.72. Although the breakout received notable optimism from the bulls, it appears the bears staged selling congestion around the peak. The asset retraced as a result, dropping to a close at $2.44.
The candle representing the previous session shows a minimal attempt at a surge. There was a small wick that ended after the asset touched $2.60. This means that the asset’s selling pressure continued, and the bulls failed to soak up the excess supply.
The FOMC may be a reason for the worsening bearish actions. The Fed announced a 25 basis point rate on Dec. 18. Such an event was supposed to encourage more investment as the crypto market sees notable increases following it. However, the authorities announced that inflation may be on the horizon. The latest pullback is in response to this announcement.
XRP has a Clear Path to $3
XRP is showing huge signs of recovery following its massive decline. A few hours ago, it dropped to a low of $2.17 but has since recovered, trading at $2.38 at the time of writing. The latest price shows a more than 3% increase from its opening price and a more than 8% surge from its low.
The altcoin sees a steady increase in trading volume from $17 billion to $20 billion. Such an increase indicates an ongoing attempt at buyback. The slow price climb suggests that the bulls are edging and may retake key lost levels.
Some indicators on the one-day chart are largely bearish, with no notable signs of a massive surge. However, the relative strength index is currently arched upwards in response to the latest volume. The accumulation and distribution chart bears the same reading as buying pressure increases. Nonetheless, the indicator remains within the normal level 58 after sinking by ten clicks on Wednesday.
The Bollinger band suggests an impending surge to $2.80. The bands are closing in as XRP sees a notable drop in volatility. Such tightening action may mean the asset is gearing up for a breakout. Bolinger’s SMA is around the highlighted price level, indicating an impending surge.
The altcoin trades close to the 23% Fibonacci retracement level at $2.34. It faces significant resistance at this mark. However, a decisive flip will result in another strong support. It will open up the $ 2.40 and $2.90 channel, increasing the chance of an attempt at $3.
