XRP Price Prediction: Strong Bounce Off Key $1 Support Could Trigger XRP’s Next Big Move

XRP (XRP) has gone up by more than 6% in the past 24 hours following the release of new rules for the crypto space by the U.S. Securities and Exchange Commission (SEC).

Today’s move comes just a few days after XRP managed to successfully stay above the $1 threshold – a key psychological support that needed to hold to prevent a much stronger correction for this altcoin.

Short liquidations spiked to a massive total of $1.70 billion in the past 12 hours, with Bitcoin (BTC) accounting for $1 billion of that total as the token just rose past the $66,000 resistance.

Moreover, Ethereum (ETH) also broke a key psychological and technical threshold at $2,000 that catalyzed the beginning of a bull market on two prior occasions.

Today’s move is similar to the magnitudes seen on October 10, back when a flash crash kicked off this bearish cycle.

Ripple Closes $275M Funding Round for Its Prime Brokerage Business

In addition to the SEC’s new rules, Ripple just secured $275 million to further strengthen its prime brokerage business, Ripple Prime.

“The robust support we received for our inaugural notes offering is a testament to the strength of our business today, and confidence in our long-term vision for the growing intersection of traditional and digital asset financial infrastructure,” commented the head of this business unit, Noel Kimmel.

Trading volumes for XRP are still a bit thin considering the strength of this price move. At $1.7 billion, these volumes account for just 2.5% of the asset’s circulating market cap.

In contrast with ETH and BTC, XRP is still at a fair distance from breaking past its nearest resistance at $1.15. However, bulls will likely aim at this mark to prompt a short squeeze and get a rally going.

Either way, $6 million worth of XRP shorts have been liquidated in the past 12 hours, which is the highest single-day wipeout in the past 6 months. This confirms that a heavily one-sided crypto market could be about to get squeezed out and turned over.

XRP Eyes Move to $1.15, Followed by 200-Day EMA Retest

Heading to the daily chart, we can see that today’s jump has invalidated a bearish descending triangle formation. In our previous XRP price prediction, we emphasized that a strong bounce off the $1 mark opened up an attractive trading opportunity offering a 5x risk-reward ratio.

We are already in positive territory and could set a first take-profit target at $1.15 for a 2.5x return. Meanwhile, our mid-term target for the token would be the 200-day exponential moving average (EMA) at around $1.32.

This technical indicator coincides with a former area of support that should now act as resistance. XRP still has a long way to go to get out of its bearish cycle, but today’s strong bounce looks quite promising.

The Relative Strength Index (RSI) just crossed above the signal line and past the 50 level, indicating that the direction of the price trend has shifted.

This is an early signal that momentum has changed from bearish to bullish, but we still need the oscillator to jump past the 60 mark to confirm a buy signal.