XRP (Ripple) 'Hesitates' Amid Market Relief Rally... Battle in the Fateful Trading Range

▲ XRP/ChatGPT generated image

XRP rebounded to $1.06 after holding the $1.03 support line. However, it showed a limited recovery trend, following the overall market relief rally but with a lower rate of increase than Bitcoin (BTC).

According to CoinMarketCap's real-time price chart on July 2 (local time), XRP recorded $1.06, up 1.40% over 24 hours. The 24-hour low was $1.03, the high was $1.07, and its market capitalization was $66.27 billion, with a 24-hour trading volume of $1.57 billion.

The primary driver of this rebound was the overall recovery trend in the cryptocurrency market rather than any specific positive news for XRP itself. While Bitcoin rose by 2.67% and the total cryptocurrency market capitalization increased by 1.98%, XRP mirrored the market recovery but its gains lagged behind Bitcoin. The CoinMarketCap Fear & Greed Index also improved from 'Extreme Fear' at 18 the previous day to 'Fear' at 20, supporting the oversold bounce trend.

On the supply side, Ripple's monthly escrow volume management was presented as a factor that eased selling pressure. Ripple unlocked 1 billion XRP as scheduled on July 1, but then relocked 70% of it, resulting in a net release of 300 million XRP, approximately $319 million, into the market. Technically, the Relative Strength Index (RSI) dropped to around 35, indicating an oversold condition that could trigger a short-term rebound.

Key short-term observation points are the $1.03 support level and the $1.09 to $1.10 resistance level. If XRP maintains above $1.03, a retest of the $1.09 to $1.10 range is possible, but if it falls below $1, selling pressure could increase again towards the $0.90 mark. The progress of discussions on the U.S. cryptocurrency market structure bill in late July is also considered an additional variable for the recovery of investor sentiment.

XRP's current trend is closer to a limited rebound amid easing fear rather than a strong trend reversal. Bitcoin's stability and whether XRP can break above $1.10 are key to further gains, and failure to defend $1 could jeopardize the short-term rebound scenario. The market is focused on whether XRP can break out of the $1.00 to $1.10 trading range this week.

[Article Key Summary]

-XRP recorded $1.06, up 1.40% over 24 hours according to CoinMarketCap, trading between $1.03 and $1.07.

-The rebound in Bitcoin and the overall cryptocurrency market, Ripple's limited escrow supply, and the RSI approaching oversold territory were cited as reasons for XRP's rebound.

-If XRP holds $1.03, a retest of the $1.09 to $1.10 resistance level is possible, but if it falls below $1, the risk of a decline to $0.90 could re-emerge.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*