XRP Sees 12% Surge: Is Further Upside Imminent?
February 4, 2025 BACK TO NEWS
XRP sees a 12% rebound with key support and resistance levels in focus, eyeing potential breakout - IcoHolder.
XRP has experienced a significant rebound, surging by 12% after a sharp drop, with key levels now in focus for traders. The cryptocurrency is facing a support range between $2.50 and $2.60, while resistance is found between $2.80 and $2.90. Despite the sharp rise, buying pressure appears to be waning, indicating a potential consolidation or pullback before the next big move. Volume has diminished from its earlier peak, suggesting that caution may be needed before entering a trade. However, a short-term entry could be considered if the price holds above $2.60 and volume begins to rise again.
Short-Term Market Trends on the Horizon
Looking at the four-hour chart, XRP has shown a broader recovery after a downtrend from $3.15, with a recent low at $1.78. This pattern of higher lows points to a possible reversal. The buying volume between $2.30 and $2.50 indicates that accumulation is occurring at these levels, further bolstering the case for a potential upward move. If XRP can maintain support between $2.50 and $2.60, it could offer a strong entry point for a long position. However, resistance between $2.80 and $3.00 might present an opportunity to take profits.
Broader View: Can XRP Break Through Resistance?
The daily chart shows a more volatile market, with XRP having reached a peak of $3.40 before a steep decline to $1.78. Price action now appears to be stabilizing between $2.60 and $2.70, with resistance near the $3.00 to $3.40 range. A break above this resistance could signal further bullish momentum. However, if XRP fails to hold above $2.50, a re-test of lower support levels could occur. Should buying momentum strengthen, a potential entry point around $2.50 to $2.60 may become viable.
Market Indicators: Mixed Signals Across the Board
Oscillators provide mixed signals, with the relative strength index (RSI) at 42.09 indicating neutral conditions, while the Stochastic oscillator also points to neutrality at 44.09. The commodity channel index (CCI) suggests a buying opportunity, whereas other indicators like the Awesome Oscillator and MACD indicate selling pressure. The average directional index (ADX) at 24.35 suggests a weak trend, making it difficult to gauge a clear market direction without additional confirmation.
Moving averages (MAs) reflect bearish momentum in the short term, as both the exponential moving average (EMA) and simple moving average (SMA) for the 10, 20, and 30-period signals suggest a sell. However, the 50, 100, and 200-period EMAs and SMAs indicate a buy, suggesting that long-term support remains in place. If XRP can break above key resistance levels, it may signal a continuation of the bullish trend. Failure to hold current support could lead to further downside movement.
As of now, XRP is at a critical juncture, with short-term volatility balanced against long-term support. Investors will need to monitor price action closely, particularly around the $2.50 to $2.60 support range, and look for a breakout above $2.90 for confirmation of continued upward momentum.