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After a weeklong volatility shift on the broader market, altcoins like XRP are back in the spotlight. The digital currency is currently paring off its losses over the past week, with the current 2.24% rally pushing it to $2.198 per CoinMarketCap data. XRP has been in a close race to hit the $3 mark for a few weeks now, and with this rebound, this is becoming increasingly possible.
XRP obstacle to be lifted
The $2.20 price mark has served as formidable resistance for the Ripple Labs-affiliated coin. Once it attains this level, market bears stage a collective sell-off to drag it back down.
Considering the current setup, the coin reverses the negative shifts in its Relative Strength Index (RSI) indicator. Now pegged at 47, the signs that overselling is thinning out are high, and an upward shift is now expected.
Other indicators, like the Simple Moving Average (SMA), have also formed a worthy wedge to watch out for. With the XRP price trading below the nine-day SMA, the possibilities of a breakout are now heightened.
XRP has remained one of the top digital currencies to watch, per its price performance. With the uptick of the past few hours, the coin has trimmed its seven-day losses to just 2%.
Traders are hyped, but when $3?
Although the recovery in the price of XRP models the broader crypto ecosystem, the breakout odds to $3 is further backed by the surge in trading volume. This underscores how much backing the top altcoin has among traders.
Notably, XRP whales are also active as the collective projections for the coin to soar higher in the coming weeks has increased remarkably.
The last time the XRP price dropped below $3 was in February. Despite the optimism around the XRP ETF and other unique fundamentals, defining a timeline to return to this local high remain an arduous task.
U.Today Editorial Team
Vladislav Sopov