While leading cryptocurrencies, including Bitcoin, are showing signs of recovery and edging back into positive territory, the XRP price has taken a surprising dip, falling to 2.28. This comes despite the recent announcement of a significant partnership between Ripple Labs and Guggenheim Partners.
The downturn has puzzled many traders, especially amid a generally improving market sentiment. Yet, from a technical standpoint, there remains a silver lining for XRP holders. The coin seems to be staying stable above $2.25, which is a significant support zone and a crucial Fibonacci retracement level.
Historically, XRP has demonstrated strong rebound behavior from this region, indicating that the market may once again follow familiar patterns. For now, this area is expected to provide a cushion, potentially preventing deeper losses.
Additionally, on-chain activity is beginning to rise, signaling growing engagement from the community. The date of June 16, which is linked to potential developments in the ongoing Ripple vs. SEC case. Many believe that a favorable legal resolution could act as a powerful trigger for XRP’s next bullish breakout.
Technically speaking, XRP is trying to bounce back from a crucial support area that is between $2.10 and $2.25. Immediate resistance levels are identified at $2.34 and $2.44, with a stronger ceiling around $2.60. Additionally, some traders are watching for a possible double bottom pattern, which might indicate a bullish turnaround if it materializes.
XRP is displaying signs of bullish divergence on shorter timeframes, especially on the 8-hour chart. Despite recent price dips, momentum indicators such as the RSI are gradually climbing, hinting at a possible near-term rebound.
One potential disruptor remains: the upcoming release of U.S. statistics on CPI inflation during the course of the next day. The results of this report could significantly sway crypto market sentiment, including that of XRP, in the short run.
