XRP’s price has experienced a recovery over the last few days, rising from a low of $1.8890 last week to surpass $2.30.
The increase in Ripple’s (XRP) value is largely attributed to the rebound in both the cryptocurrency and stock markets that occurred last week. Major U.S. indices, including the Dow Jones, S&P 500, and Nasdaq 100, each rose by more than 1.5% on Friday.
XRP’s surge is also fueled by growing optimism regarding the potential approval of a spot ETF by the Securities and Exchange Commission (SEC). Current data indicates that the likelihood of approval has increased to 76%. A spot XRP ETF would likely draw greater investments from Wall Street.
Additionally, there’s speculation that the SEC may drop its lawsuit against Ripple Labs, which would allow the company to pursue more partnerships with banks and financial institutions in the remittance sector.
Ripple Labs aims to leverage these partnerships to bolster its stance against SWIFT, which processes over $150 trillion in transactions annually.
Moreover, XRP’s price has benefited from continued accumulation by large investors. One notable whale invested $24.2 million to acquire 10.3 million tokens on Bitfinex on Monday. Whale accumulation is a key indicator in cryptocurrency fundamental analysis.
XRP price increased after maintaining key support
From a technical perspective, the recent rebound in XRP was facilitated by bulls defending a critical support level at $1.9447. This price point is crucial, as Ripple has struggled to move below it several times since December, with a single, failed breach occurring on February 3.
The $1.9447 mark also represents the neckline of an ongoing head-and-shoulders pattern forming since November, with the head positioned at $3.40, and the left and right shoulders at $3.00.
Consequently, should XRP fall below $1.9445, which also coincides with the 200-day moving average, it could indicate potential further declines, possibly leading XRP down to the psychological support at $1.00.
Bulls need to push the price above the $3.00 level, corresponding to the right shoulder, to nullify the head-and-shoulders pattern. Achieving this would position the next key level at $3.40, which is the highest point reached this year. A successful breakout may suggest potential gains toward $5.00.