With the Bitcoin price back at $98,000, altcoins are on a recovering rally. Among the quick-to-recover altcoins, XRP marks a magnificent hammer candle in the daily chart, with a bounce back to $2.51 after a 24-hour low at $1.76.
Is XRP on the verge of creating a morning star pattern? More importantly, will this drive the XRP price to a new all-time high by crossing the $3.50 psychological zone?
XRP Price Action: Key Levels and Technical Indicators
In the daily chart, the XRP price action reveals four consecutive bearish candles. However, the intraday candle marks a significant lower price rejection after reaching levels last seen on November 29, 2024.
Currently, with the massive bounce back from its 24-hour low, XRP is aiming to reclaim the 50-day EMA line. However, the recovery run faces opposition from the Dynamic Average line and the 23.60% Fibonacci level.
The Fibonacci resistance is priced at $2.58. Due to the recent double-top reversal from $3.17, the daily RSI line dropped to nearly oversold levels, marking a significant surge in selling pressure.
However, the chances of a reversal have significantly increased with the broader market recovery.
Optimism Rises in the Derivatives Market
With the short-term recovery, speculations are starting to rise in the derivatives market. The funding rate of XRP has bounced back from –0.0648% to –0.0042%, revealing a sharp decline in sellers willing to hold short positions.
As the funding rate is on the verge of re-entering the positive zone, the open interest stands at $3.81 billion. The long-to-short ratio remains at 0.945, indicating a slightly greater number of selling positions in the market.
The significant recovery in the XRP sentiments come after a significant whale offloading over the past year. In a recent X post by Ali Martinez, using the data from Santiment, he highlighted a major selling of a massive offloading of 130 million XRP tokens during the broader market crash.
Key Price Targets: Can XRP Break $3.17?
As price action analysis and speculation in the derivatives market hint at a potential recovery, the trend-based Fibonacci levels highlight crucial price targets. The 50% level is priced at $3.17.
Optimistically, a bullish breakout of $3.17 will likely propel the XRP price to the 78.60% Fibonacci level at $3.80, bringing the $4.28 price target onto the bullish radar.
