XRP is closely following Bitcoin's price movements and benefiting from the strong correlation between the two assets.
With Bitcoin hovering near $110,000, XRP appears to be preparing for a potential rise. However, market conditions and investor sentiment will play a crucial role in its price trajectory.
XRP Following Bitcoin
XRP currently shows a strong 0.91 correlation with Bitcoin, reflecting closely linked price movements between the two assets. Historically, when XRP's correlation with Bitcoin weakens, the altcoin experiences price declines. However, when the correlation strengthens, XRP tends to benefit from Bitcoin's upward momentum.
This correlation is particularly promising as Bitcoin remains near $110,000 and may be approaching a new all-time high (ATH). When Bitcoin rises, XRP is likely to rise accordingly, enabling a potential price surge.
XRP's macro momentum is showing strong bullish signals. The Relative Strength Index (RSI) is currently positioned above the neutral mark, indicating the altcoin is experiencing increasing buying pressure. This positive RSI change suggests that XRP's price could continue rising in the short term, especially if broader market conditions favor an upward movement.
While the RSI remains in the bullish zone, more investors are likely to view XRP as a strong candidate for growth, further validating its potential. If this momentum continues, XRP could gain enough strength to break through major resistance levels and move to higher price ranges.
Will XRP's Price Continue Rising?
XRP is currently trading at $2.29, having risen 9.3% last week. Remaining above the $2.27 support level, it appears ready to rebound and continue its upward trend. If XRP successfully maintains this level, it could rise to the next resistance level of $2.38.
Converting $2.38 to a support level would provide a strong foundation for XRP to potentially move towards $2.50 in the long term. This would indicate that the upward momentum is fully established, paving the way for a sustained upward trend over the coming months.
However, if XRP fails to maintain the $2.27 support level, it could decline to $2.20 or even $2.13. Falling below these levels would invalidate the bullish logic, potentially erasing recent gains and causing a price drop. Such a decline would signal a change in investor sentiment and potentially mark the end of the current recovery.
