XRP has gained 15% this week, driven by strong investor support and positive market cues. After escaping major bearish cues, the altcoin is now targeting a price recovery.
Support from long-term holders (LTHs) and the improvement of broader market conditions have been key to this upward movement.
XRP Investors Are Hopeful
The Mean Coin Age (MCA) for XRP has not shown any sharp downtick, indicating that the long-term holders are still holding onto their positions despite the recent market volatility. These investors, who have been holding for extended periods, have not sold over the past few days, showing confidence in a future price recovery.
Since LTHs are considered the backbone of any asset, their decision to keep their holdings stable signals to the market that they expect XRP’s price to recover, which supports the ongoing positive price action.
The broader macro momentum for XRP has been turning more positive. The Average Directional Index (ADX) has slipped below the 25.0 threshold, which suggests that the strength of the downtrend has weakened significantly. The ADX had been signaling a strong bearish trend over the past few days but has lost its power in the last 24 hours.
This change opens the door for potential recovery as the downtrend’s dominance diminishes, allowing for a more favorable market environment for XRP. The shift in the ADX is particularly important as it indicates that the bearish momentum may have reached its peak. With the momentum of the downtrend fading, there is now an opportunity for XRP to regain ground.
XRP Price Has A Shot At Recovery
XRP’s price currently stands at $2.54 after a 15% rise this week. The altcoin is attempting to secure the support of $2.33, which could pave the way for further upside. If this level holds, XRP could target $2.70 in the near future.
The altcoin has successfully prevented observing further losses bouncing off the uptrend support line this week. If XRP can continue to rely on the support of LTHs and improve macro conditions, it could flip $2.70 into support and aim for the next target of $2.95.
However, if XRP fails to breach $2.70, it may remain stuck in a consolidation range above $2.33. This could delay any further recovery and shift the bullish outlook into question, potentially invalidating the positive momentum.
Disclaimer
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