The price of XRP shows signs of a bullish recovery, where analysts view levels for an upward outbreak. After forming a low point around 7 April, XRP gradually worked a corrective phase and the recent price promotions hints a rebound possible in the game.
Current market structure
On the daily period of time, XRP keeps a company over critical support between $ 2.05 and $ 2.10. At the same time, it is confronted with resistance between $ 2.35 and $ 2.36. A decisive outbreak above $ 2.35 would open the door for higher goals for $ 2.44 and possibly $ 2.60 in the short term.
A bullish W-shaped double bottom pattern seems to be created, so that the case for an upward movement is further supported when the resistance levels are erased.
Elliott Wave structure suggests Rebound potential
Analysts identified a WXY correction of the highlights of January that was probably postponed on 7 April. From that low completed XRP a progress of five wave, followed by a corrective three-golf recovery, a classic pattern that indicates a potential larger bullish structure in front of the bow.
Price promotion now suggests the possibility that a new relocation of five wave will develop upwards. Support is currently followed at $ 2.22, $ 2.15 and $ 2.11. A drop under $ 2.11 would weaken the bullish case in the short term and weaken the focus on the next major support near $ 1.95.
Rising financing percentages can cause a decrease
Although the price remains above the support levels, the costs for traders to hold long positions (called financing rates) are quietly raised.
At present, the financing percentage is 0.01% every 8 hours, but if it rises to 0.02% or more without the price being moved higher, there is a good chance that the price could fall. If XRP falls below $ 2.25, it can fall to $ 2.01, $ 1.90 or even $ 1.55.
The good news is that this dip can create the perfect setup for a strong comeback, with a large outbreak possible afterwards.