- Summary:
- XRP price has newfound upside momentum with an underlying high volatility that could flip the $1.50 level into support.
XRP price rose sharply late on Tuesday as the wider crypto market resumed its rally with Bitcoin’s break above $96k. XRP was up by 6.2 percent to trade at $1.493, signaling an imminent return to the $1.50s territory. The coin is recovering from successive four-day declines which saw it break below the $1.300 mark.
What’s moving XRP price?
A much-publicised rumour claiming a planned $104 billion investment by Elon Musk three days ago failed to prevent XRP’s sharp slide. Therefore, the current recovery is mostly driven by Bitcoin’s market-wide influence and not XRP’s asset-specific exploits.
The best news for XRP came over the weekend when SEC Chairman Gary Gensler announced that he will resign on January 20, 2025. However, the news was encapsulated in a market-wide decline fueled by profit taking.
Nonetheless, the resumption of the market rally could bring that matter back into play. Investors are likely to accumulate XRP in anticipation of a potential withdrawal of the court case against the token’s issuer, Ripple Labs, by the Securities and Exchange Commission following Gensler’s resignation.
Momentum indicators urge caution
There has been a wide divergence in XRP price Bollinger Bands on the daily chart, signifying high volatility. Therefore, that calls for cautious optimism, as the recent sudden price spike could be followed by a sudden sharp drop. Moreover, the RSI on reading is at 84, signaling that the asset is heavily overbought, and could come under selling pressure in the coming days.
Pivot: The pivot price is at 1.475. Action above that mark will signal bullishness. Otherwise, the seller will be in control.
Resistance: The first upper barrier is likely to be at 1.499. If the momentum strengthens, the price could clear that mark and set the next target at 1.522 near the upper Bollinger Band.
Support: The first support could come at 1.460. Moving below that mark will invalidate the upside narrative. A stronger downward momentum could send the price to test 1.433.
