XRP had plunged to a low of $1.02 on Friday, sending shivers down investors’ spines that a fall to the $0.90 level is imminent. Just when traders thought a drastic dip was on the cards, the leading altcoin reversed course and headed north during the weekend. It spiked to $1.17 and settled at the $1.14 zone on Monday.
Also Read: Here’s What XRP Needs To Turn Bullish And Reclaim The $3 Mark
What Next For XRP?
Over the past week, XRP has seen a 10% surge, taking investors by surprise. The next resistance zone for Ripple’s native token now stands at $1.20. If it climbs above the zone and its average price movements remain intact, an upsurge towards the $1.40 level could be possible. This is the best-case scenario for the altcoin if the market recovers.
However, to reach $1.50, XRP would need to clear multiple support zones, and the current market conditions do not support that thesis. The leading altcoin must rise nearly 32% to get there, which is unlikely at this pace. The buying activity in XRP has dipped close to 11% last week, and the dip in confidence came as Bitcoin crashed to $58,000.
Bitcoin has since then scaled up higher, reaching a high of $63,000 on Monday, experiencing a 6% rise. Even Ethereum went from $1,500 to $1,700+, seeing a spike of close to 13%. Several experts are calling the development a dead cat bounce, where the upward tick is minimal. It is advised to remain cautious at this level, as even XRP stands at risk of losing its gains.
The broader stock and cryptocurrency market is reeling under various macroeconomic factors. The market is just reeling from the conflict in the Middle East and needs time to regain its balance. While things are slowly settling down as the Strait of Hormuz is open, the risk of a reignition is also high. It is advised to wait and watch for developments before taking an entry position in XRP.