XRP ETF Approvals Spark Recovery as Price Climbs Above Critical $2.31 Support
Market Structure Shifts Higher
- XRP has recovered significantly from a 27% decline in December.
- Regained the important $2.31 level after multiple ETF approvals by the SEC.
- Support at $1.92 defended six times; bulls now target resistance at $2.52–$2.58.
The story that the chart is telling is one of institutional validation meeting technical support with an unrelenting stream of ETF’s revived sentiment exactly when price tested multi-month support. With less wiggle room, traders have several inflection points for exit given last week’s swiftly bitten failed new highs exploration, as coin price upshifted to the top of the hourly 20 sma. Price managed to close daily above the 20-day EMA for first time in about two weeks, creating test that, if passed and supported tomorrow, could let price take a peak to retest the 50-day EMA at $2.31 confirmPasswording today’s move forged a new hourly low, which almost certainly unfolds as a thigh tight trail closing stop for a profitable wedge breakout if you want to keep long.
| Metric | Value |
|---|---|
| Asset | XRP (XRP) |
| Current Price | $2.13 |
| Weekly Performance | -11.14% |
| Monthly Performance | -11.01% |
| RSI (Relative Strength Index) | 37.7 |
| ADX (Average Directional Index) | 34.7 |
| MACD (MACD Level) | -0.09 |
| CCI (Commodity Channel Index, 20-period) | -114.75 |
Momentum Resets From December’s Capitulation – ETF News Changes Sentiment
The daily timeframe’s Ichimoku Cloud, representing current price in relation to values 26 days ago, shows Ethereum hovering just beneath. That level came within a whisker of the bottom edge of the cloud (which acts as a support and resistance zone) before the turn higher began. The index is miles beneath the weekly cloud and still slightly below the monthly cloud following the January collapse, both of which add to the bearish pressure.
In September, the XRP/USD daily RSI moved below 30 eight times, and each instance saw it rally 28% to 163% over the following two weeks. Last week entire RSI followed suit, but through a different lens, as it fell to 31 between the wholesale rinse and the subsequent upside. This time the added context is that after submitting that annual low, the market was presented with the most bullish medium-term news. The low week was the same a before launch remains in a potentially large rising wedge forming on the weekly timeframe.
ADX at 34.7 Signals Strong Directional Move After Weeks of Compression
The ADX reading of 34.7 suggests that a real trend has developed in the face of potentially overoptimistic expectations. Contains some degree of truth it’s hard to knock back ETF bulls too much, the sudden rise in the digital currency come with surprising news that U.S. time solitary physical Bitcoin futures. This mound of fresh downside protection can likewise stock ETF investors, which tells them the practical consequences behind the news can be substantial. The physical product can become the discoveries of innovators, imitation digital forms, repeal futures surrounding the news, and the music scene of U.S. taxpayers.
Simply put, we are starting to return to the type of trading that dominated the late-summer and fall months before last month’s pivot to consolidation. Day traders should now look to adapt strategies utilized during that time frame over the immediate ‘19 end-of-year stretch, which could mean changes to not only their tactics but also to their basket of stocks and ETFs.
50-Day EMA at $2.31 Flips From Resistance to Critical Bull Support
Looking at the VPVR, we can surmise that there’ll be scant resistance beyond the 50-day EMA into $2.60, which would put the 100-day EMA as the next notable inflection point on any breakout, though if we’re talking true resistance, you’d have to squint hard at the VPVR to see where that might be if XRP closes out the weekly over the 50-weekly EMA.
When you consider that it took almost four years of a declining trend to finally wash out all the weak hands, failure to hold the $2.31 level could lead to a consolidation further off the question as frustrated members decide enough pain is enough and move their money elsewhere. Although volume was lacking this week, it was the third week in a row of higher prices; with fresh catalysts on the horizon, we don’t expect that trend to last much longer.
Resistance Stacks Between $2.52-$2.58 Where December Highs Meet Monthly Pivots
There is solid footing beneath pennies in the $2.30s, including the 10-day moving average, the middle Bollinger Band, and the monthly pivot — but failing to defend this support would be a terrible sign. This would mark a lower low on the daily chart and nudge the stock back into the trench where it spent all of 2018.
On the support side, the market structure seems more solid after this week’s jump. The $2.31 level (50-day EMA) is now the first level of defense, along with the psychological $2.00 level that held during the most desperate moments of December. Most importantly, the $1.92-$1.93 zone has been tested six times since June and has not been broken, making it the ultimate floor for this market. The rebound from each test of this level has been more V-shaped, indicating constructive accumulation by the most patient investors.
The setup could hardly be more constructive for contrarians if I had drawn it myself with crayons. Fibonacci convergence at $2.303 – which importantly also happens to be where the descending tops line is coming in – has delineated a very clear line in the sand, and above that, there’s just acres of real estate.
Bulls Need Daily Close Above $2.58 to Confirm ETF-Driven Breakout
Bulls need to have a daily close above the $2.52-$2.58 resistance mass that entices follow-through buying developing some upside momentum and bring the 100-day EMA back in play as a target. Should that open the door to a retest of the 100-day EMA zone, then shorts will continue to get squeezed out increasing the probability of a break higher on stop-loss volume.
If the bullish case unfolds, projects to higher double digits could be activated. More than one resistance bar would come in play below $3.40, with $3.00-ish and the 50-month SMA near $3.25. Cross those, and fusion would target the dominant/medium resistance at $4.10 in a final step before a new uptrend supremacy in the rare territory of the $6–$7 Spacerogenic Cluster nears activation. A new uptrend could then aim past $9.90, $12.25, and the $13.50–$14.65 part of the 2008 collapse.
With almost all macro indicators reset, XRP would likely reach this short-term target within a couple of weeks. If prices accelerate above $2.85 technical targets include $3.08 which has been an important pivot dating back to 2017 and either $3.32 or $3.52 to $3.62, depending on if you are using traditional or alternative Fib Extensions to measure the 2018 downtrend.
