XRP Faces Pullback After Impressive 25% Rally, Market Awaits Next Move
Key Insights:
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XRP’s recent pullback follows a 25% rally, leaving traders uncertain about the next major price move.
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The cryptocurrency’s price is currently range-bound between $1.44 and $1.51, signaling market consolidation.
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Analysts point to XRP’s support at $68.15 billion in market cap, with $111 billion seen as the next key resistance.
XRP’s remarkable surge over the past few days has lost momentum, with its price retreating after a 25% rally. Over the weekend, the cryptocurrency broke through key resistance levels, reaching $1.67 for only the second time this month. However, after a notable rally, XRP saw a swift return to the $1.50 region, accompanied by a rejection candle on the daily chart, signaling uncertainty among traders.
The rally to $1.67 was a strong reversal for XRP, which had been experiencing a prolonged downtrend. This movement, reflected in a higher-lows reversal pattern, sparked optimism among investors. Yet, the bullish momentum was short-lived. The pullback below $1.50 left many wondering if the market had reached its peak, or if external factors could reignite its upward momentum.
Tight Range and Mixed Sentiment
Currently, XRP trades within a tight range of $1.44 to $1.51, offering little direction. Many analysts believe this consolidation phase might precede a significant move, either up or down. XRP’s liquidity structure is drawing attention, with some seeing the recent price action as a favorable setup for a potential upside breakout.
Source: TradingView
Macroeconomic factors and the ongoing regulatory battle between Ripple and the US Securities and Exchange Commission (SEC) are also impacting XRP’s price. With no clear resolution in sight, the uncertainty surrounding Ripple’s legal troubles has created a volatile market environment. However, a favorable regulatory decision could significantly influence XRP’s next move.
Support and Resistance Levels: The Key Levels to Watch
Despite the recent pullback, analysts are closely watching key support and resistance levels that could dictate XRP’s future trajectory. XRP’s market capitalization recently bounced off a support level at $68.15 billion, providing hope for another bullish push. The next resistance level to monitor is around $111 billion in market cap. If XRP manages to surpass this resistance, many believe it could pave the way for new price highs.
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