XRP experienced a notable price recovery at the beginning of the week after a steep decline over the weekend. The digital asset slipped to a low of $1.90 on Sunday before finding support, marking a four-day sell-off that saw heavy liquidation pressure.
Following the drop, XRP saw renewed buying interest on Monday, leading to a sharp rebound. The price surged by up to 10 percent in early trading before encountering resistance. This rally continued to Tuesday, when XRP hit a peak of 2.2$ but encountered short-term rejection.
At the moment, XRP can be purchased at the price of 2.18 USD, following only a slight relative drop of 0.6 percent registered in the last 24 hours. This is a reversal since some traders are seen to be enjoying their gains on the rise in the past few days.
The activity in these markets is also decreasing, with a 45.22 percent decline in the volume of trading to 2.79 billion, according to CoinMarketCap.
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Technical Indicators Reflect Market Indecision Amid Weakened Volume
While the recent rebound has provided a short-term boost, technical indicators remain largely neutral. The Relative Strength Index (RSI) on the daily chart sits near the midpoint, signaling that neither bulls nor bears currently hold a clear advantage.
If XRP manages to breach the nearest resistance at $2.20, the next milestone is close by at approximately $2.26 in the future. This position is in line with the 50-day simple moving average and may offer more resistance in the run-up to the 200-day simple moving average of $2.37.
A further rise above $2.37 can generate bullish momentum, and the checkpoints could be at levels of 2.50 and 2.65.
The negative side of the picture is that a failure to support itself beyond the $2.00 level may cause new selling. There, XRP can again test support at 1.75 or below, notably if the volume further decreases on the market.
To the larger picture, Ripple just recently introduced Rippled Version 2.5.0. This update introduces several aspects to the XRP Ledger ecosystem, such as the support of batch transactions, token escrow IOU, and the implementation of a Merkle Patricia Trie (MPT).
Although the technical component of the upgrade is impressive, it is not yet obvious how it will be reflected in the short-term market regime, as market participants hope to understand the direction.
Reflecting ongoing market uncertainty, XRP’s recent price action shows support holding near 1.90 while resistance remains firm around 2.20.
The market’s volume is less, indicating that there is a lack of conviction, which shows that a change is on the way based on what is triggering in the markets. Investors are careful to observe technical levels as they await new momentum or an increased threat of losses.
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