XRP finds support at $2.70, targets the $3 resistance: check forecast

XRP, the native coin of the Ripple ecosystem, has lost nearly 20% of its value since hitting a local high of $3.7 a few weeks ago.

This dip coincided with a bearish run from Bitcoin and the broader crypto market.

However, the market seems to be embarking on a recovery, and XRP could rally to a new all-time high over the coming weeks.

Whales continue to accumulate despite bearish PA

XRP is up by 1% in the last 24 hours and is now trading at $2.84 per coin.

The positive performance comes after a poor start to the week, with XRP establishing support at $2.70 on Monday.

The current market volatility is caused by geopolitical and monetary policy uncertainty.

Traders are focused on Fed rate-cut expectations, while inflation data releases are adding to liquidity stress in the crypto market. 

These uncertainties have resulted in XRP facing selling pressure over the last few weeks.

However, whales have absorbed the selling pressure, keeping XRP’s price above the $2.5 psychological level.

Whales have accumulated 340M XRP ($960M) over the past two weeks, suggesting that institutions are positioning for a potential rally while weak hands offload their bag. 

While institutional interest remains, retail interest in XRP has declined in recent weeks.

According to Coinglass, XRP’s Open Interest (OI) shows a 2.34% decline over the last 24 hours, with the volume now around $7 billion.

The dip in XRP’s OI means that traders are not taking up leveraged positions in the cryptocurrency, with the current market volatility playing a major role in this decision. 

XRP eyes $3 as the $2.70 support holds

The XRP/USD 4-hour chart remains bearish despite XRP adding 1% to its value in the last 24 hours.

The technical indicators show that the bearish momentum is fading, and XRP could rally higher in the near term.

XRP price found support around its daily level at $2.70 on Monday, allowing it to bounce back above $2.80 over the last 24 hours.

The MACD lines are closer to the positive zone, suggesting an improved bullish momentum.

The RSI of 53 also shows that XRP is no longer facing significant selling pressure. 

If the current support level at $2.70 continues to hold, XRP could extend its recovery toward the next major resistance level at $2.99, which also happens to be the 61.8% Fibonacci retracement level.

An extended rally would allow XRP to target the $3.3 resistance zone over the next few days. 

However, the RSI and MACD momentum indicators have to remain positive for XRP to embark on a sustained recovery run. 

If XRP fails to close the daily candle above the $2.70 support, the bearish run would extend towards its next major support level and its 200-day EMA at $2.51.

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