XRP (XRP) has jumped by 3.4% in the past 24 hours, following a strong rebound off a key support that we highlighted in a recent price prediction article.
Trading volumes rose by nearly 30% during today’s session and currently sit at $1.8 billion, accounting for over 2% of the asset’s circulating market cap.
Despite today’s interesting market-wide jump, short liquidations did not register a meaningful spike, meaning that we have not yet broken key resistance levels.
Impact of Binance Hack on XRP Should Be Limited
Oil prices retreated today below $100 for the first time since October 15, even though the United States struck an Iranian island.
Cryptocurrencies may have taken a breather as a result, as lower oil prices result in better macroeconomic conditions and, if they keep dropping, that could lead to a short-term decline in the odds of a rate hike in December.
That said, persistent tensions in the Middle East continue to be the market’s wild card and a potential source of a black swan event, and that could continue to keep a lid on crypto prices.
For XRP, the Binance hack had a strong impact on its price action, as it pushed the token to the $1.20 area for the first time since August 20.
The exchange has reportedly processed nearly $5 billion in withdrawals, representing around 3% of its total assets. The incident is largely contained, and its impact on Binance’s financials was limited.
This could also explain why the crypto market is recovering, as Binance may have had to replenish its reserves for multiple tokens.
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See all Ripple forecastsXRP’s Lending Protocol Proposals Continue to Amass “Yes” Votes
Certain project-specific tailwinds may play in favor of XRP’s mid-term outlook, including the firm’s recently approved license to launch a national bank in the United States.
In addition, on-chain data shows that a proposal to launch a Single Asset Vault (XLS-65) that powers lending features within the XRP Ledger has hit a 60% approval rate, and it is now only 20% away from being passed.
The second proposal that needs to be approved is the Lending Protocol itself (XLS-66). That one currently boasts a lower rate of 54%, but validators may be encouraged to vote for it once (or if) XLS-65 is passed.
This would instantly create a new use case for the XRP Ledger and could pave the way for the beginning of a new era of enhanced DeFi capabilities and ecosystem growth for this blockchain.
XRP Needs to Break Past $1.32 to Confirm a Trend Reversal or Risk a Drop to $1.12
Turning to the 4-hour chart, XRP has recaptured the key $1.26 area. This level was a relevant support during the latest pullback, but it was temporarily broken as a result of the Binance hack.
If this uptrend continues, we could see XRP hitting $1.32 and even $1.40 in the near term. However, volumes are still low, which increases the odds of a pullback if the token encounters a strong sell wall at these levels.
Meanwhile, the Relative Strength Index (RSI) in this lower time frame currently sits at 64 — typically interpreted as a buy signal, as it indicates positive momentum is accelerating.
We still see a big risk of a drop toward the other two fair value gaps (FVGs) sitting at around $1.14 and $1.08 that have not yet been touched. Any of these levels could prompt a strong wave of buying, and we believe that they hold the necessary demand to trigger a true recovery for XRP.