XRP Performance Outlook

XRP could perform well in the event of a Bitcoin rebound, since selling pressure has been lesser.
A bounce to $2.4 was likely in the short term, and continued gains would flip short-term bias bullishly.

Ripple (XRP) exhibited strength against Ethereum (ETH), the foremost among altcoins by market cap. CoinMarketCap data showed that XRP gained 5.57% in 24 hours, compared to ETH’s 2.25%.

Even otherwise, ETH has erased all gains following the US Presidential election, while XRP remained up by 351% from the lows of November 4th. Can XRP recover after retesting the $2 support?

XRP Maintains Its Bearish Structure

XRP has formed multiple ranges in recent months, with each range being shorter than the previous one. The most recent one was broken in mid-February, reversing a bullish move and falling below range lows.
The range lows align with the 78.6% Fibonacci retracement level based on the earlier rally that reached the $3.4 high.

While the price retraced nearly all the gains from that rally, the A/D indicator continues to trend higher, indicating ongoing accumulation despite the retracement. The lower selling pressure suggests a quick recovery for XRP.

Given the bearish structure and the significance of the $2.3 resistance level, a move higher seems unlikely in the near term. The MFI is at oversold levels, hinting at a potential price bounce, but this may struggle to exceed $2.3.

The 1-month liquidation heatmap shows a large liquidity pocket at $2.84-$2.88, the lower high from mid-February after the bullish range breakout.

$2.36 and $2.62 are also key interim levels that could attract prices. The 1-week chart reveals a strong short-term magnetic zone at $2.36, illustrated similarly on the monthly chart.

Therefore, a short-term price bounce to $2.36-$2.4 seems probable, followed by a price drop. Although the A/D indicator shows reduced selling pressure on the daily chart, the market structure remains bearish.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.