- XRP bounces off Fibonacci zone as $2.07 marks major confluence
- Ripple drops lawsuit appeal, removing key regulatory risk
- Bullish divergence hints at momentum shift toward $2.65
XRP is close to a crucial turning point as the traders keep an eye on the key $2.07 support. The price has just rebounded off of $2.145 after a pullback from the $2.40 area. Analysts think that this technical outlook may determine the next major directional movement of XRP.
XRP Finds Major Support at $2.07
The $2.07 price is consistent with a number of overlaps between Fibonacci levels and wave targets. The .618 Fibonacci retracement and a 1:1 wave C extension are found in this zone. The convergences indicate that more algorithmic trading can be focused on this point.
Market participants see this level as the last low of wave 4 before the possible wave 5 breakout. This structure, when confirmed, may change the momentum to a wider bullish trend. Traders expect rebound from this area and subsequent acceleration to the higher resistance areas.
Source: X
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The reversal thesis is also supported by technical indicators, as RSI shows a high bullish divergence in both the short and mid-term periods. The divergence appears while price action continues to decline toward the key $2.07 zone. It is a sign that there is a build-up of momentum while selling pressure fades.
On-chain data also indicates that the large holders continue to increase their exposure at this price range. This action shows that there is accumulation before a potential breakout. The volume measures are stable, which means that institutional investors are re-entering the market.
In case XRP manages to maintain the $2.07 support, some price targets of $2.25 and $2.65 may be activated. The price targets are similar to previous resistance zones and Fibonacci extensions. However, volume confirmation will be essential in order to confirm any reversal action.
Ripple Withdraws Cross Appeal in XRP Case
In addition to the technical setup, Ripple legal clarity presents additional support to the market structure. Ripple has officially withdrawn its cross appeal against the SEC case, which ends a multi-year legal battle. The SEC will also be expected to withdraw its pending appeal in response.
This decision comes after a long court procedure that started in 2020. One of the most important decisions made by Judge Torres stated that XRP is not a security per se. Although Ripple was penalized over institutional sales, the legal status of the token was explained.
The elimination of regulatory uncertainty minimizes the risks to investors and could draw additional institutional capital. The market sentiment has positively reacted to the development, which has pushed XRP back up to $2.149 in the last 24 hours. This resolution is in line with the current technical setup.
Source: Coinmarketcap
The traders now consider the $2.07 level both a technical and psychological support zone. A positive test may trigger a powerful reversal to multi-month highs. This coupled with positive legal results, XRP is now in a period of less risk and new bullish potential.
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