XRP (Ripple) 'Hesitates' Even Amid Market Relief Rally... Battle in the Fateful Box Range

▲ XRP/ChatGPT generated image

XRP rebounded to $1.06 after holding the $1.03 support line. However, it remained at a lower growth rate than Bitcoin (BTC), showing a limited recovery trend following the overall market relief rally.

According to CoinMarketCap's real-time price chart on July 2 (local time), XRP recorded $1.06, up 1.40% in 24 hours. The 24-hour low was $1.03, the high was $1.07, and its market capitalization was $66.27 billion, with a 24-hour trading volume of $1.57 billion.

The primary driver of this rebound was the overall recovery trend in the cryptocurrency market rather than XRP's own positive news. While Bitcoin rose by 2.67% and the total cryptocurrency market capitalization increased by 1.98%, XRP mirrored the market recovery but its gains did not match Bitcoin's. CoinMarketCap's Fear & Greed Index also improved from 'Extreme Fear' 18 to 'Fear' 20 the previous day, supporting the oversold bounce trend.

On the supply side, Ripple's monthly escrow volume management was presented as a factor that eased selling pressure. Ripple unlocked 1 billion XRP as scheduled on July 1st, but then re-locked 70% of it. The net amount released into the market was calculated to be 300 million XRP, approximately $319 million. Technically, the Relative Strength Index (RSI) dropped to around 35, indicating an oversold condition that could induce a short-term rebound.

Key short-term observation points are the $1.03 support line and the $1.09 to $1.10 resistance level. If XRP holds above $1.03, a retest of the $1.09 to $1.10 range is possible. However, if it falls below $1, selling pressure could intensify again, potentially pushing it down to around $0.90. The progress of discussions on the US cryptocurrency market structure bill in late July is also considered an additional variable for the recovery of investor sentiment.

XRP's current trend is closer to a limited rebound amid easing fear rather than a strong trend reversal. Bitcoin's stability and XRP's ability to break above $1.10 are crucial for further gains. If it fails to defend $1, the short-term rebound scenario could falter again. The market is focused on whether XRP can break out of the $1.00 to $1.10 box range this week.

[Article Key Summary]

-XRP recorded $1.06, up 1.40% in 24 hours according to CoinMarketCap, trading between $1.03 and $1.07.

-The rebound of Bitcoin and the overall cryptocurrency market, Ripple's limited escrow supply, and the RSI approaching oversold territory were cited as reasons for XRP's rebound.

-If XRP holds $1.03, a retest of the $1.09 to $1.10 resistance level is possible, but if it falls below $1, the risk of a decline to $0.90 could re-emerge.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*