XRP surges 29% and shakes up the market: what’s next?
$XRP is driving an explosive rebound of 29.23% over the last 24 hours, fueled by short-position liquidations and renewed risk appetite in the cryptocurrency market. We analyze the key technical levels, the historical jump in volume, and potential short- and medium-term scenarios for the asset.
The main driver of the bullish move has been identified as a strong compression of supply in the derivatives market. Short liquidations in XRP topped more than USD $2 million just yesterday, fueling a massive buy cycle as sellers were forced to repurchase the asset to cover their losses—triggering further liquidations and accelerating the move.
Beyond the speculative short-term move, the network’s fundamentals show growing adoption. The XRP Ledger averaged nearly 50,000 daily active addresses over the last week—an achievement that reflects increased use of the network to handle coin transactions or as an execution platform.
Recommendation: HOLD [HOLD] / BUY ON PULLBACKS
The current trading signal is based on a technical analysis of 5 signals:
1) the main trend on the weekly chart is still bearish below the SMA-200, but the short-term potential is bullish;
2) the bullish momentum in the short term is the strongest in months;
3) volume supports the rise;
4) options and futures markets are increasing their exposure;
5) the RSI level is at extreme overbought conditions, which has historically required a pause or correction to recharge after a move.
Therefore, we recommend not chasing the rally.
$XRP has entered investors’ radar with force thanks to an internal and external catalyst in the market that has unveiled a large, accumulated buying pressure.
$XRP is driving an explosive rebound of 29.23% over the last 24 hours, fueled by short-position liquidations and renewed risk appetite in the cryptocurrency market. We analyze the key technical levels, the historical jump in volume, and potential short- and medium-term scenarios for the asset.
The main driver of the bullish move has been identified as a strong compression of supply in the derivatives market. Short liquidations in XRP topped more than USD $2 million just yesterday, fueling a massive buy cycle as sellers were forced to repurchase the asset to cover their losses—triggering further liquidations and accelerating the move.
Beyond the speculative short-term move, the network’s fundamentals show growing adoption. The XRP Ledger averaged nearly 50,000 daily active addresses over the last week—an achievement that reflects increased use of the network to handle coin transactions or as an execution platform.
Recommendation: HOLD [HOLD] / BUY ON PULLBACKS
The current trading signal is based on a technical analysis of 5 signals:
1) the main trend on the weekly chart is still bearish below the SMA-200, but the short-term potential is bullish;
2) the bullish momentum in the short term is the strongest in months;
3) volume supports the rise;
4) options and futures markets are increasing their exposure;
5) the RSI level is at extreme overbought conditions, which has historically required a pause or correction to recharge after a move.
Therefore, we recommend not chasing the rally.
$XRP has entered investors’ radar with force thanks to an internal and external catalyst in the market that has unveiled a large, accumulated buying pressure.