Ripple takes first step toward reclaiming $1.98

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  • XRP price surged nearly 40% in the last 24 hours, pushing it toward a critical level.
  • A decisive close above the previous weekly open at $1.40 could signal the start of the next leg up to $1.74.
  • Ripple will most likely consolidate in the 12-hour demand barrier before resuming its uptrend.

XRP price is a minor surge away from retracing toward its pre-crash levels. Interestingly, this sudden ascent occurred within the last 24 hours.

XRP price at pivotal point

After the recent collapse, XRP price found support at $1.03, the previous weekly close. On the 4-hour chart, Ripple bounced twice from this level and surged nearly 40% to $1.40, coinciding with last week’s open and the 100 Simple Moving Average (SMA).

The best-case scenario for XRP price would be a minor consolidation inside the 12-hour demand zone that extends from $1.22 to $1.41 before resuming its uptrend. In such a case, the bulls could build up momentum that will allow them to push it up 23% to the next swing high at $1.74.

Surpassing this level could help XRP price reach a yearly high at $1.98.

Adding a tailwind to this bullish outlook is the SuperTrend indicator’s buy signal that has flashed for the first time since March 30.

XRP/USDT 4-hour chart

Upholding the overall optimistic narrative is the near-zero funding rate, which implies that investors are not crowding in to open long positions despite a 40% pump in XRP price.

XRP funding rate chart

XRP funding rate chart

Santiment’s 30-day MVRV model tracks the average profit/loss of participants that acquired XRP in the past month. This metric points that 32.9% of addresses are in profit. Although this level is not near an average top, minor profit-taking might ensue at the current price levels, leading Ripple into a consolidation phase.

XRP 30-day MVRV chart

XRP 30-day MVRV chart

Overall, XRP price remains in a safe zone despite approaching a critical barrier at $1.40. Now, a consolidation followed by a breach in this zone could spark a 25% upswing to $1.74. However, if the sellers overwhelm the buyers leading to a decisive close below the 50 SMA at $1.24, it would jeopardize the upward move.

If XRP price shatters the $1.20 support barrier, it will invalidate the bullish move and trigger a 10% move to $1.09.

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