XRP News Today: XRP Rebound 10% After Weekend Sell-Off, Faces Resistance

XRP, the digital asset, experienced a significant price recovery at the start of the week following a steep decline over the weekend. The asset's price dropped to a low of $1.90 on Sunday, marking a four-day sell-off that saw heavy liquidation pressure. This decline was followed by 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 into Tuesday, when XRP hit a peak of $2.20 but faced short-term rejection.

Currently, XRP is trading at $2.18, following a slight relative drop of 0.6 percent in the last 24 hours. This reversal is attributed to some traders taking profits from the recent price increase. The market activity has also decreased, with a significant decline in trading volume. This decrease in volume suggests a lack of conviction among market participants, indicating that a change is on the horizon based on what is triggering in the markets. Investors are carefully observing technical levels as they await new momentum or an increased threat of losses.

Technical indicators reflect market indecision amid weakened volume. 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. 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, with potential checkpoints at levels of $2.50 and $2.65.

On the downside, a failure to support itself beyond the $2.00 level may cause new selling. In this scenario, XRP can again test support at $1.75 or below, notably if the volume further decreases on the market. Ripple recently introduced Rippled Version 2.5.0, which includes 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 clear how it will be reflected in the short-term market regime, as market participants hope to understand the direction.

XRP’s recent price action shows support holding near $1.90 while resistance remains firm around $2.20. The market’s volume is less telling, indicating a lack of conviction. Investors are cautious and are observing technical levels as they await new momentum or an increased threat of losses. The overall market sentiment remains uncertain, with traders and investors closely monitoring the situation for any signs of a potential breakout or further decline.