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XRP stunned the market and silenced pessimists over its recovery move with a golden cross confirmation. This formation has killed the "dead cat bounce" narrative in some quarters about the asset.
XRP reclaims $2 as trading volume explodes 192%
According to CoinMarketCap data, XRP jumped by over 5.7% in price over the last 24 hours, outshining Bitcoin and other notable assets. This helped the coin to reclaim the $2 price level as it surged from a low of $1.89 to peak at $2.05.
As of this writing, XRP changed hands at $2.01, which represents a 5.8% increase within the time frame.
The trading volume has also recorded a massive spike by over 192% to $4.19 billion within the same time frame. The development signals increased trading activity among market participants, who appear to have rekindled their interest in the asset.
The golden cross, which often signals a bullish recovery, has effectively shut the dead cat bounce narrative on XRP. Notably, many had dismissed XRP’s initial recovery as a short-term move and predicted it could suffer a further decline in the market.
However, the recent price spike and volume surge indicate that XRP might be on a path of steady recovery. If the current momentum in trading activity is sustained, XRP is likely to target the $2.40 price level, which is a critical support for the coin.
If it fails to hit $2.40, the gains of XRP might suffer a reversal, particularly if users pull back and volume drops. With XRP’s Relative Strength Index (RSI) still at 56, it indicates that the asset still has room for upside before it slips into oversold territory.
Can XRP still prove world's highest IQ holder right?
Meanwhile, as U.Today reported, XRP’s weekly chart is suggesting the coin could record larger gains.
According to a crypto analyst, Steph is Crypto, if XRP's price conforms to a breakout, it might post a 71.2% gain that might see the coin soar to $3.40.
Such a move might not happen with a sudden spike, given the prevailing volatility in the broader cryptocurrency sector. Additionally, XRP has several resistance levels to breach, given its decline path.
The ability of traders to resist a massive sell-off when the coin begins to rebound might likely dictate how fast it recovers.
Interestingly, the world's highest IQ holder, YoungHoon Kim, recently predicted that XRP would rebound to $3. Although the 48-hour time frame he projected has elapsed, it appears the coin is now getting ready to align with Kim’s prediction.
The next couple of days will reveal how far the current momentum in the XRP space will last and if it is sufficient to push the price up.
Gamza Khanzadaev
Arman Shirinyan
Tomiwabold Olajide
Alex Dovbnya