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XRP is seeing a price comeback, raising prospects of a push toward $4. Following three days of downward pressure that brought XRP to a low of $2.96, the cryptocurrency has rebounded, reaching an intraday high of $3.214 on Saturday. The rebound was noticeable, indicating increased demand and investor confidence near crucial support levels.
XRP has dropped over 6.56% in the last week, with the majority of the losses coming from a liquidation cascade on Thursday that wiped out more than $105 million in XRP long positions, the second-largest altcoin liquidation amid a $735 million crypto market fall.
Market analysts had anticipated a more severe breakdown if $3 failed to hold. However, the rebound to above $3.20 implies bulls are defending aggressively, potentially paving the way for a new rise.
XRP traders are anticipating a push toward the psychological $4 resistance level if current momentum sustains.
XRP eyes $4
XRP started dropping upon reaching a high of $3.55, declining for three days at a stretch. XRP price consolidated for days after reaching a high of $3.666 before bears took over.
Failure to resume the rise may have persuaded short-term investors to take profits. That pushed the price to $2.96, which is expected to serve as strong support. If the present rally continues with intensity, the bulls will make another attempt to push XRP above $3.66. If they succeed, XRP might rise to $4, then $4.50.
Unlike this assumption, a break and close below $2.96 could signal the beginning of a deeper correction to $2.60.
XRP is regaining investor interest as a wave of ETF-driven optimism builds around the coin, despite large-scale liquidations earlier this week.
Vladislav Sopov
U.Today Editorial Team