XRP rallies on 65% volume spike, eyes $2.70 as market ecovers; check forecast

The cryptocurrency market is having a strong start to the week after the bearish performance during the weekend. Bitcoin dropped to the $104k region on Friday but has bounced back above $111k. 

Ether, the second-largest cryptocurrency by market cap, is also back above $4k after retesting the $3,700 low.

XRP followed the same path, with the Ripple native coin now trading above $2.40 following its weekend dip below $2.2.

Surge in trading volume pushes XRP’s price higher

XRP, the native coin of the Ripple ecosystem, is up 6% in the last 24 hours, making it the third-best performer among the top 10, behind Dogecoin (DOGE) and Cardano (ADA).

The positive performance comes amid improved trading volume and a recovery by the broader cryptocurrency market.

XRP’s trading volume has increased by 64.64%, with over $4 billion worth of XRP tokens traded in the last 24 hours.

Trading volume remains high, suggesting that there is strong interest from a large number of investors.

The growing interest in XRP suggests that investors are anticipating a gain in the token in the short term.

Despite its rally, XRP remains the 5th-largest cryptocurrency by market cap, behind USDT (Tether) and BNB. The expected launch of the Ripple custody could also help push XRP’s price higher in the near term.

Ripple Labs has allocated $1 billion to purchase XRP tokens for its treasury, a move analysts consider to be bullish for the broader Ripple ecosystem.

The company is following the footsteps of Strategy, Metaplanet, and other leading crypto treasury companies. 

XRP eyes $2.70 as bullish momentum returns

The XRP/USD 4H chart is bearish and inefficient despite XRP adding 6% to its value in the last 24 hours.

The momentum indicators have switched bullish on the lower timeframe, suggesting that buyers are returning to the market.

XRPs price dipped by more than 5% last week after facing resistance close to the lower trendline of a falling wedge pattern. However, it has bounced back and is now trading at $2.47 per coin.

Similar to Bitcoin, XRP has an RSI of 61 on the 4H chart, suggesting a bullish bias. The MACD lines are also about to crossover into the positive region, indicating a buy signal for the cryptocurrency. 

If the recovery continues, XRP could rally towards the $2.70 EPA level over the next few hours.

An extended rally would allow the Ripple native coin to reclaim $3.0 for the first time since October 7. 

However, the bearish momentum hasn’t completely disappeared. If the selling pressure returns, XRP could decline below the weekend low of $2.19 and drop to the next daily support at $1.96.

The indicators on the daily chart remain bearish. If the momentum indicators switch bullish, XRP could look to reclaim its price above $3.0 in the near to medium term.

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