After days of lackluster range trading that left many wondering about its next move, XRP has finally shown signs of life, initiating a modest rebound.
The cryptocurrency initiated a rebound on Sunday, slightly edging higher. While not dramatic, this upward rise is significant, as it might indicate a potential shift in market sentiment. The price of XRP, which had been trading sideways, gained slight bullish momentum, rising higher.
At the time of writing, XRP was up 2.33% in the last 24 hours to $0.5518. XRP's trading volume has risen 85.51% in the last 24 hours to $1.07 billion. XRP began increasing from Sunday's low of $0.536, reaching highs of $0.556 in today's trading session. If today closes in the green, XRP would mark its second consecutive day of gains.
Tesla CEO Elon Musk directly mentioned XRP for the first time ever, eliciting positive reactions in the crypto community.
XRP faces a critical hurdle: the daily simple moving average (SMA) 50 at $0.56, if the upward movement is sustained. If XRP can break above this resistance, it may be able to continue its upward trend. Failure to do so may result in a decline, as traders who buy in at lower levels take profits.
A recent attempt on Oct. 17 to break through this level was met with resistance from bears. That said, the next few days might be crucial for XRP to see if it can break through this level. Breaking above the daily SMA 50 could attract more buyers, potentially pushing the price higher. On the other hand, if the resistance proves too strong, XRP might consolidate or even retrace some of its recent gains.
What's next for XRP price?
The XRP price is currently trading between its daily moving averages of 50 and 200, at $0.56 and $0.539, respectively. For the time being, the market will keep a careful eye on XRP price movement near its daily moving averages for any signs of a breakout or breakdown.
In this situation, a decisive breakout might signify additional gains, possibly targeting the $0.6549 level, while a rejection could indicate more range-bound trading in the near term.
On the other hand, a break below the daily SMA 200 at $0.539 might push the XRP price to the lower end of its range, potentially targeting $0.507 for support.
