XRP (XRP) has jumped by 3.3% in the past 24 hours, to $1.40, as oil keeps trading below $100 and macroeconomic conditions appear to be improving.
On Tuesday, the Producer Price Index (PPI) in the United States for March stood at 0.5%, which was 50 basis points below the market’s consensus estimate for the period.
This was a clear indication that higher tariffs and a temporary spike in oil prices are not yet having a significant impact on the country’s economy.
Meanwhile, import prices rose by 0.8% or 120 basis points below the market’s estimates for March, which was also a potential reassurance for the market that prices are not getting out of control.
These better-than-expected economic data points, along with a strong retreat in crude prices, seem to have improved market sentiment, which results in better valuations for risky assets like cryptocurrencies.
XRP has now accumulated a 5.7% jump in the past 7 days, while trading volumes increased by 31% in the past 24 hours, indicating increasing buying pressure.
Short liquidations in the past week have spiked to $1.2 billion, as crypto prices have been steadily rising. This could also be an early indication of a short squeeze that could accelerate if the move pushes XRP and other tokens above key resistance levels.
As we emphasized in our previous XRP price prediction, we see a short-term target of $1.50 for the token, implying a 7% upside potential based on current prices. Meanwhile, if the rally gains traction, we expect a retest of the $1.75 area.
This is where the 200-day exponential moving average (EMA) currently sits, making it a relevant technical level for the market that would translate into a “reversion to the mean” move if it is hit.
The daily chart shows that our latest trading opportunity has already yielded a 1.8x risk-reward ratio. We set an entry at $1.35 earlier this week, and the market retreated to that level just a day after, giving late buyers a chance to get in.
Our first take-profit target, which is usually 1.5x, has already been hit. Hence, this is now a profitable trade. The savvy move now, from a risk management standpoint, would be to set the stop price at break-even and set a second take-profit target at $1.50.
The Relative Strength Index (RSI) is rising toward the 60 level. If it does hit that mark, that would indicate that bullish momentum is accelerating, further confirming a positive outlook for XRP in the mid-term.
Heading to the 4-hour chart, we got two consecutive buy signals right after the token bounced off the $1.33 support area.
Meanwhile, the second signal popped up yesterday, indicating strong institutional participation in the move right after the American session started.
Selling pressure is rising at $1.40, so it seems likely that the market could retest the $1.38 level during the American session today before resuming its uptrend toward $1.50.
Alejandro Arrieche specializes in drafting news articles that incorporate technical analysis for traders and possesses in-depth knowledge of value investing and fundamental analysis.