Key takeaways
- XRP is trading above $2.4 after defending the $2.35 support level.
- The cryptocurrency could rally towards the $2.7 resistance level soon.
XRP defends the $2.35 support level
The cryptocurrency market had a positive start to the week, with Bitcoin and other major cryptocurrencies recording excellent gains. Bitcoin hit the $107k resistance level but faced rejection at this zone and dumped below $103k on Wednesday.
This bearish performance also affected major altcoins, including XRP. Ripple’s native coin dipped below $2.40 on Tuesday, but the bulls defended the $2.35 support level. This allowed the cryptocurrency to reclaim the $2.4 level and could serve as the springboard to push the price higher in the near term.
Analysts expect XRP’s price to surge higher ahead of a possible ETF approval by the United States Securities and Exchange Commission (SEC). In an email to Coinjournal, Alexis Sirkia, Chairman of (Ripple-backed) Yellow Network, stated that,
“Investors are looking to get in ahead of and benefit from the retail and institutional capital that floods in with ETF approvals, which looks to be set for around November 13.
Whilst separate entities, Ripple’s recent $500 million strategic investment and $40 billion valuation are another positive factor impacting XRP’s price. If Wall Street titans like Citadel and Fortress are betting so much on Ripple, which stewards the XRPL, they clearly believe in the utility of the ledger itself. Any further major price move for XRP will be driven by these structural factors, not just by short-term sentiment.”
XRP eyes $2.7 if the daily support at $2.35 holds
XRP rallied to the $2.55 level on Monday, retesting its 50-day EMA following the bearish performance recorded last week. However, the resistance failed and XRP dipped below $2.40 on Tuesday. It is now trading around $2.44 per coin.
If the daily support at $2.35 holds, XRP could rally higher and retest the $2.55 resistance level once again. An extended bullish trend would see XRP grab the trendline liquidity and hit $2.70 in the process.
The daily RSI dipped below the neutral 50 level to 47, indicating slight weakness in momentum. However, the MACD showed a bullish crossover earlier this week, suggesting that the bullish view remains in play.
On the flip side, if XRP closes below the daily support at $2.35, the bearish trend would continue, and XRP would decline toward the next daily support at $1.96.
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