XRP eyes fresh rally if $2.84 breakout holds: analysts weigh in

The cryptocurrency market has picked up where it left off last week, with Bitcoin and altcoins recording excellent gains to start the new week.

Bitcoin, the number one cryptocurrency by market cap, raced to a new all-time high a few hours ago. It is now trading above $122k, and analysts expect further upward movement.

Altcoins are also performing excellently, with Ripple’s XRP one of the best performers in the last seven days. The coin added 29% during that period and is now looking to surge higher once it breaks above the $3 psychological mark.

Rising institutional bid pushes XRP towards $3

XRP, the native coin of the Ripple ecosystem, performed positively over the weekend, adding 5.3% to its value in the last 24 hours.

At press time, the price of XRP stands at $2.95 and could rally higher in the near term.

Its rally is fueled by institutional accumulation, a few hours ago, as trading volume spiked to 176 million, more than double the hourly average.

The rising institutional bid confirms breakout strength and could allow XRP to break past the ILQ at $3.00 over the next few hours. 

Analysts believe that improving regulatory signals and Ripple’s expanding enterprise adoption are the major catalysts for inflows into the XRP ecosystem. 

Furthermore, XRP’s market cap now stands at $174 billion, making it the third-largest cryptocurrency by market cap after overtaking Tether’s USDT. XRP added $30 billion to its market cap over the last seven days. 

XRP eyes $3.40 after breakout above $2.84

The XRP/USD 4-hour chart is bullish and efficient after the coin topped the $2.84 resistance level over the weekend. The coin is now approaching the $3.00 psychological mark and could rally higher in the near term.

The technical indicators are largely positive, suggesting a strong bullish bias.

The MACD lines are within the positive territory as XRP faces further buying pressure. The RSI of 74 also shows that XRP could be entering the overbought region soon. 

XRP is currently approaching the first resistance level, the ILQ at $3, marked by the high of March 2. A daily close above the $3 ILQ could extend the uptrend towards the $3.29 level, which also coincides with its Transactional Liquidity (TLQ) area. 

In the event of an extended rally, XRP could surpass the all-time high price of $3.40 established on January 15. 

However, if the bulls become exhausted, a reversal in XRP could retest the $2.65 support level last tested on Saturday.

Despite that, the XRP/USD pair is extremely bullish at the moment, mirroring the broader cryptocurrency market. The coin could rally to a new all-time high in the near to medium term.

The post XRP eyes fresh rally if $2.84 breakout holds: analysts weigh in appeared first on Invezz