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XRP, the fourth largest cryptocurrency by market value, reached highs of $2.36 on April 28 in a three-day rise.
Following profit-taking on the market, XRP fell from its high. The loss continued throughout the Wednesday session, with XRP falling to lows of $2.12, momentarily trading below the closely watched daily SMA 50.
However, an uptick in buying momentum has helped the token recoup ground, pushing it back above the daily simple moving average (SMA) 50, presently at $2.19.
Over the past few days, XRP has traded in a confined range, hovering near the daily SMA 50. A minor positive is that XRP has managed to stay above the daily SMA 50 despite bears' attempts to drag it lower.
Eyes will now be on XRP to see if it can flip the daily SMA 50 back into support, which might serve as the foundation for the next leg of its rise. If this is accomplished, bulls may set their sights on higher targets in the $2.50 to $3.00 range.
XRP, on the other hand, may enter into consolidation if bulls or bears are unable to make a meaningful move. However, a dip below the daily SMA 50 might prompt XRP to seek support at $2.12 and $2.
XRP whale inflows skyrocket on Binance
The crypto market saw increased volatility on Wednesday; XRP was not exempt, with its price dropping nearly 7% at one point.
According to CryptoQuant, whales move fast when volatility hits, with Binance dominating in BTC and XRP inflows as prices fall.
In a bit of a reversal, the crypto market rebounded alongside stocks in the U.S. afternoon hours Wednesday. Despite this, the majority of the market continued to trade in a very narrow range, as it had for the previous weeks.
Markets have been mostly range-bound over the last week, paving the way for what some believe might be an explosive run higher.
Vladislav Sopov
Dan Burgin