XRP price is showing renewed strength after breaking out of a prolonged downtrend, with rising network activity and growing institutional interest bolstering the bullish outlook. As part of its recovery process, XRP price now faces numerous resistance areas as buyers try to take the token to the $2 mark.
At the time of writing, XRP is trading at $1.42, with a gain of 1.72% over the past 24 hours. XRP’s 24-hour trading volume is $6.74 billion, whereas its market capitalization stands at $89.18 billion. At the same time, XRP makes up 3.34% of the overall crypto market.
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XRP Price Reclaims Key $1.50 Area
XRP recently recovered after it fell from its all-time high of $3.65 to around $0.99, as per a recent post by Crypto Patel. Its move back into the $1.45-$1.50 range was a significant move that marked the change in its price structure and led to its return to being one of the biggest cryptocurrencies by market capitalization.
During the August 22 market-wide flash crash, when heavy liquidations pushed the prices of many digital assets lower, XRP did not lose its appeal and attracted buyers quickly despite selling pressure.
Also, network activity has shown a new positive development. The number of active addresses on the XRP Ledger reportedly increased by 659%, crossing the threshold of 300,000 over three days.
XRP Price Risks Dropping Below $1.36
The institutional interest in XRP is becoming increasingly evident as well. Goldman Sachs reportedly revealed its $86.5 million exposure to XRP through five spot XRP ETFs during the second quarter of 2023. The development highlights that the financial institution’s exposure has increased over the period.
From a technical perspective, the $1.65-$1.70 region is the next major resistance area. A sustained daily close above $1.70 could strengthen the recovery and put the psychological $2 level within reach.
However, XRP still faces downside risks. The $1.36-$1.40 zone remains an important support area, and losing this range could weaken the current recovery and expose XRP to a move toward $1.00. Broader market conditions, selling pressure and developments surrounding the CLARITY Act could also influence the next major move.
For now, the key question is whether XRP can turn the $1.55 level into support and then break through $1.65-$1.70. If buyers manage to clear those barriers, the recovery could gain further momentum. A failure to hold current support, however, would signal that the recent rally still needs stronger confirmation.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
