XRP Price Prediction: Daily EMA Bounce Propels XRP to $2.3 – Can Ripple Hit $3?

Despite this weakness, it is still the second-best performing token on a year-to-date (YTD) basis with gains of 9.3%.

XRP has benefited from Ripple’s legal victories in its long-standing cases against the United States Securities and Exchange Commission (SEC).

In addition, new leadership at the SEC is interpreted as bullish for the token as it will enable Ripple to make progress in its ambitious vision of becoming the world’s go-to decentralized platform for cross-border payments.

The launch of Ripple USD (RLUSD) has been a positive step in this direction. This token has been listed by multiple top exchanges like Bitget and Kraken, which has contributed to increasing its liquidity and market cap.

Moreover, the company managed to get a license to operate as a licensed crypto payments platform in Dubai, while RLUSD was recognized as a digital asset in this jurisdiction recently.

Finally, the market is sure that an XRP-linked exchange-traded fund (ETF) will soon be approved. Recently, the CME Group green-lighted its first XRP futures, paving the way for other similar vehicles to get the nod from regulators.

Ethereum-linked ETFs brought in more than $1.7 billion during a 7th-week streak of positive net inflows. If XRP captures at least a portion of that kind of interest, which seems highly likely, it could propel the token to retest its all-time highs.

XRP Bounces Off Key Daily EMA

In the meantime, let’s see what the price action has been doing lately. In our latest XRP prediction, we said that the price action seems poised to retest the 200-day EMA after a clear bearish breakout and retest of the $2.28 level.

This is exactly what happened just a few hours later as shown in the chart. However, the price has bounced strong off this level which emphasizes that there are still buyers out there willing to scoop up XRP at around $2 with the expectation that the price rallies to higher highs.

Thus far, this bounce has taken XRP to the $2.3 level and has managed to reverse the downtrend in the 4-hour chart.

This is quite bullish and emphasizes that there was a significant volume of buy orders placed at that level.

Now that the market has established a clear floor, the short-term outlook is bullish and these would be the key levels to watch for XRP down the road.

First, the same $2.28 level that acted as resistance recently has now taken the role of support once during this latest uptrend. Then, the $2.23 level is the last line of defense for bulls in case the latter fails to hold its ground.

Ultimately, if these two supports hold, we could expect a move to $2.5 in the near term as a break above $2.3 will likely blow up a significant number of stop orders.

Market Could Push XRP to $2.5 to Trap Sellers

At some point recently, the ratio of accounts holding futures of this cryptocurrency on Binance stood at nearly 3.6. However, that ratio has declined recently to 2.17 and once again surged to 2.9 today.

This means that there was significant selling pressure at some point that either liquidated a big number of long positions or that sentiment shifted a bit to the bearish side.

This creates liquidity above key levels like $2.3 that the market may aim to grab now that it has found strong support from which it can prop up the price.

Heading to the 1-hour chart, we can see that the price action is struggling to stay above $2.28 already and volumes have been above the average at that zone.

A bearish breakout will demand a retest of the $2.23 area to raise the necessary liquidity for the next leg up while a strong bounce off this level that leads to a break above $2.3 will confirm a bullish outlook that could end up pushing XRP to $2.5.