XRP Price Showing Signs of Rebound

The price of XRP is showing early signs of a rebound after a weeklong drawdown that resulted in over a 6% loss. As of now, data from CoinMarketCap indicates that the 24-hour trading volume has surged by 87% to $4.57 billion. This boost in liquidity provides XRP with the foundation to respond to shifting demand.

XRP Price Due for Rebound

Following a peak at $2.86 on December 3, XRP has been on a downward trend. Although there were occasional minor gains leading to lower highs, the general sentiment in the past week has been bearish.

However, changes are on the horizon, supported by a key lifeline detected in the market. The increased trading volume could be the catalyst for the long-anticipated rebound. As of this writing, XRP’s price has decreased by 4.86% in the last 24 hours, settling at $2.08. This price reflects a reduction in XRP’s significant loss position.

Other metrics indicate XRP’s potential to recover from its market losses. According to CoinGlass, XRP Open Interest has increased by 2.66%, with over 950 million XRP engaged in futures trading on various exchanges.

Current projections suggest that XRP has established critical support at the $2 mark, with an initial target set to recapture the $2.25 resistance zone.

Fundamentals Still Count

Investors now have ample reasons to buy and hold XRP. The Ripple Labs ecosystem is expanding with the introduction of the RLUSD stablecoin. According to the firm’s executives, XRP will work in tandem with RLUSD through liquidity provisioning.

Additionally, the XRP Ledger is evolving to introduce a newer range of decentralized applications (dApps), which could enhance adoption among XRP users.

Although the coin’s growth seems inhibited, the potential for an XRP ETF product offers optimism for the long term.