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By bouncing sharply off the $2.8 level, XRP has staged one of the most significant recoveries of the summer. More than just halting a bearish decline, this rebound preserved the market’s overall bullish structure and prevented what might have been the start of a protracted decline.
Support zone holds
The $2.8 support zone was an important level that acted as a last support level for the asset. Buyers intervened forcefully when the price tested it, pushing XRP higher and demonstrating resiliency during a time when sentiment was leaning bearish. Had this level failed, XRP might have plunged into a more extensive correction phase, which could have reversed a lot of the gains since July.
The interaction with XRP’s exponential moving averages (EMAs) is what distinguishes this recovery. The short-term support zone, formed by the convergence of the 26 and 50 EMAs, gave the bounce more technical weight. EMA convergence in this region has historically served as a signal for changes in momentum and a launchpad for additional upward movement. A medium-term continuation toward the $3.2-$3.5 range is more likely if XRP maintains its position above these averages.
Network's surge
Since network activity has increased significantly over the past few weeks, including a noticeable increase in new account activations, on-chain data also supports this recovery. This rise in involvement indicates rising institutional and retail interest, providing XRP with a stronger basis for long-term growth.
The obstacles that XRP will face in the future are obvious. For the asset to keep moving forward, it must overcome the psychological and structural resistance of the $3.0 mark. XRP may retest the $3.5 level, and possibly surpass it, if it is convincingly cleared. But a failure to maintain above $2.8 would refocus attention on bearish risks.
For the time being, XRP has not only escaped a catastrophe, but has also set itself up for future growth. The asset’s trading story for the summer may be defined by the $2.8 recovery.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team