Ripple (XRP) was under the spotlight once again since it recovered on a robust demand zone and boosted confidence in the market. The action followed as the market sentiment solidified in the key cryptocurrencies, shifting the traders to focus on high-capital assets that have recently retracted.
As of writing, XRP is trading at $2.16, a positive growth of 3.54%. The trading volume has increased by 84.82% and is currently at $4.97 billion. Nevertheless, with this strength, XRP has fallen by 2.04% in the past week.
Source: CoinMarketCap
The current rebound will place the asset at a crucial juncture. It is a point at which past recoveries have stopped and where sellers have limited future gains several times. Traders are currently monitoring whether buyers can sustain their momentum or if the market will once again approach the demand zone.
XRP Moves Into a Critical Phase of Its Correction
Analyst CasiTrades highlighted that XRP has entered the Wave C of its current corrective trend. The analyst claimed that Wave 2 has been adhering to an exact pattern up to this point. The A wave traded and entered the 0.382 retracement neatly, and the B wave dragged back right to the point of $2.11. This movement was in line with the expected values.
The second target is the 0.618 retracement zone around $2.26. The level will most probably indicate whether the correction will be continued or the structure will break. The Wave 2 scenario can be verified by a rejection close to $2.26. It might also allow for downside pressure to occur.
Also Read: Ripple (XRP) Price Analysis: Bulls Eye Strong Breakout Toward $4.20
In case bears reclaim and take control, the market can revisit its support areas of $2.11 and $2.03. If these break, the price will likely hit the analyst’s target of $1.65. According to the analyst, this result is only valid until XRP breaks out of the $2.41 level. A shift above would nullify the trend.
Source: X
ETF Momentum and Technicals Place XRP at a Crucial Stage
This technical arrangement has given market emphasis to the following move. The reaction at over $2.26 is now considered a significant signal for trend confirmation. Traders will be monitoring the zone keenly, as it has provided the accurate direction in past cycles.
Still, interest in XRP exchange-traded funds appears to be picking up. According to SoSoValue data, close to $13 million in inflows was registered on Tuesday. Since their launch in November, the ETFs have only experienced one outflow. That only outflow amounted to roughly $41 million on Jan. 7.
Source: SoSoValue
The total inflow is now $1.25 billion. Net assets now total $1.54 billion. Consistent ETF demand is a sign of institutional enthusiasm for the token.
Technical indicators and the ETF are indicating that XRP is now at a critical juncture. Traders are currently waiting patiently for confirmation as the price approaches structural support that has turned into resistance.
Also Read: Solana (SOL) Price Strengthens After $10.8M ETF Inflows, Bulls Target $180
