XRP Price Shows 3% Recovery, as Bulls Eye 50% Gains in the Medium Term

Highlights:

• The price of XRP recovers 3%, showing signs of life despite resistance at $2.14.
• The bullish trend is building, targeting $2.80–$3, a 50% increase if key levels are overcome.
• XRP’s market sentiment remains cautious, with liquidation events signalling market volatility.

XRP price has shown a recovery sign, as it is up 3% to $2.02, despite its daily trading volume dropping 1.46% in the past 24 hours. The overall cryptocurrency market is experiencing mixed impulses following the US and Iranian attacks.

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XRP Price Shows Signs of Life as the Bulls Aim Above the Falling Parallel Channel

On the 4-hour chart, XRP has failed to overcome the resistance level of 2.14, which aligns with the 50-day moving average (MA). This point has been a serious challenge as the Bulls try to reclaim this mark. Currently, XRP price is trading well within a descending parallel channel, after recovering from the $1.92 weekend lows. 

The Relative Strength Index (RSI) of XRP is at 38.07, and this shows that the asset is approaching oversold status. However, if the bulls gain momentum with the altcoin showing signs of recovery, XRP could surge. Nonetheless, considering this, the RSI is still below 50, and therefore, the current trend indicates that the bears are still in control, continuing to hold the price within the larger trading range. 

Moreover, the Moving Average Convergence Divergence (MACD) indicates negative values, which also confirms bearish prospects. However, the momentum indicators are signalling a potential buy opportunity, which will be confirmed once the blue MACD line crosses above the orange line. 

XRP Bulls Target 50% Gains in the Medium Term

By analyzing the derivatives market, XRP continues to perform well in terms of trading. The dynamics of the price are negative, but the open interest of the futures of XRP has grown by 1.62% to $3.60B. This suggests that interest in the market remains. In addition, the long/short ratio of XRP over 24 hours is at 0.97, which shows a balanced market approach with a slight negative balance in relation to the short positions.

The data provided by the liquidation map is one of the more alarming ones as it stated that positions in the amount of $11.48M were liquidated in the past day. This is a stark reminder of the market’s volatile nature, where sudden price changes can trigger high liquidation events. Remarkably, long positions take the lead, which implies that traders are optimistic of a price surge soon. 

As much as it is seen as bearish on the technical front in the short run, XRP might continue to hold in the $2.02-$1.99 levels, so as to prevent any further downsides. Nevertheless, the 50-day moving average is also one of the resistances. Failure of XRP to surpass this level might lead the coin towards lower territories, below $1.8 or even $1.6.

Conversely, if XRP price overcomes the current resistance and demonstrates positive price momentum, it may also recover higher price levels. This may see XRP price hit $2.17, $2.22, and $2.24 resistance in the short term. In the medium term, the bulls could target the $2.80 – $3 mark, marking about 50% gains. 

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