- XRP rebounded 5.5% after successfully defending the $1.77 support level from the Oct 10 crash.
- Institutional demand remains robust with 30 consecutive days of XRP ETF inflows despite price lag.
- Technical analysts eye a breakout above $2.08 to confirm a bullish trend reversal.
XRP bulls have successfully defended the critical $1.77 support level, triggering a 5.5% relief rally after retesting the lows established during the October 10 Crypto Flash Crash.
The latest drop has reignited discussions about a potential trend reversal, despite the cryptocurrency’s trading volume remaining significantly low.
Related: XRP Wobbles Below $2 as Fractal and Wyckoff Signals Divide Analysts
A 5.5% Bullish Sentiment Boost for XRP
As typically expected around pivotal price regions, XRP bounced off the cited support and has gained approximately 5.5% within a couple of hours, according to data from TradingView. That singular push represents XRP’s highest single-session gain in the past ten days, with the cryptocurrency yet to encounter notable resistance.
In the meantime, TradingView’s data reveals that XRP traded for $1.86 at the time of writing, which is still within the key support zone, despite increasing buyers’ interest. The absence of sharp spikes suggests a lack of buying pressure. However, the steady display of bullish candles on the intraday charts signifies controlled accumulation rather than speculative chasing.
What Traders Expect From XRP
Typically, gradual upward motions in cryptocurrency prices signify ongoing takeover by bulls who may be taking up positions. It also eliminates the chances of sudden rejections usually associated with sharp spikes and sudden vertical pumps. However, XRP’s behavior around the next resistance will provide clearer information about the sustainability of the latest resurgence.
It is worth noting that XRP’s price at the time of writing was below the first minor resistance at $1.94. That price precedes more notable Fibonacci levels that XRP needs to break above to confirm the return of bullish momentum. The first Fibonacci resistance confronting XRP’s current move is at $2.08, which was last tested on December 10.
While XRP optimists anticipate the upward trend to continue, the cryptocurrency’s price must remain above $1.77 to sustain the bullish sentiment. Otherwise, breaking below this support could open the way for further decline, which could see the digital asset head toward its April 2025 low of $1.61.
Related: XRP Algorithmic Trading Hits US Retirement Accounts with Digital Wealth Partners
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Source: https://coinedition.com/xrp-price-defends-flash-crash-support-with-5-5-bounce-but-volume-lags/
