With an intraday recovery of 4.52%, XRP is trading at a market price of $2.10. This marks a retest of the broken supply zone and an early reversal from the 200-day EMA line.
As XRP stands at a crossroads, the volatile market condition is one of its steepest corrections. Will this recovery in XRP result in a price jump back to $3.35, or is a correction to $1.40 inevitable?
XRP Price Action Analysis
In the daily chart, the XRP price trend showcases a bullish failure to hold support at the $2.14 zone. With a four-day correction streak, the XRP price created a low at $1.89.
However, the intraday recovery comes as a pre-test of the broken zone. Furthermore, the XRP price has seen multiple low-price rejection wicks near the $1.90 zone.
With this quick reversal with low-price rejection, XRP hints at a historical price reversal. Since December 2024, XRP has maintained dominance above this level.
Furthermore, the rising 200-day EMA line comes in action to act as another cushion element. Currently, XRP struggles to overcome the support-turn resistance level at $2.15.
XRP price Targets
A bullish comeback will likely propel XRP back within the right-angle ascending broadening wedge and increase the chances of a reversal. Furthermore, it will increase the chances of a bounce-back to the overhead resistance trend line.
As per the trend-based Fibonacci levels, the 23.6% Fibonacci level at the $3.35 swing high will be the immediate price target. On the flip side, in case of a bullish failure, holding dominance at the 200-day EMA line could result in a steeper correction. Based on the price action levels, the crucial support for XRP is at $1.39 and $1.05.
Market Conditions Warns Against Bullish Positions
According to the latest tweet by Ali Martinez, a crypto analyst, the data from Glassnode reveals the crypto market is growing fearful. However, the analyst points out that the best time to be greedy is when others are fearful.
It is a classic saying in the crypto market and has proven profitable to many in the industry. Currently, the fear and greed index fluctuates between extreme and moderate fear.
With the declining market sentiments, the capital inflows in the crypto market are on a deteriorating trend. Since December 10, 2024, the capital inflows in the crypto market have plunged from $134 billion to $8.94 billion.
This marks a significant change in the capital inflows, supporting the growing fear in the market.
Conclusion
Amid such conditions, XRP is unlikely to witness any parabolic rise. However, the short-term recovery could challenge the 50-day EMA at $2.46. On the flip side, a correction rally after the support zone breakdown could witness fluctuation near the 200-day EMA at $1.85.