After Capitulation Selloff, XRP Explodes 26% in 24 Hours... Trend Reversal Remains Doubtful
After Capitulation Selloff, XRP Explodes 26% in 24 Hours... Trend Reversal Remains Doubtful
After a near-panic selling phase reached its limit, XRP (Ripple) staged a sharp rebound of more than 26% in a single day, recording the strongest recovery momentum among major cryptocurrencies.
According to cryptocurrency market tracker CoinMarketCap on February 6 (local time), XRP surged 26.07% over 24 hours to trade at $1.46. During the same period, the total cryptocurrency market capitalization rose 9.97%, and Bitcoin (BTC) also rebounded by more than 11%, but XRP’s gains far outpaced the broader market average.
The key driver behind this surge is widely seen as a rebound from an extreme technical oversold zone. XRP’s 7-day Relative Strength Index (RSI) plunged to as low as 8, effectively entering a phase of “selling exhaustion,” while the price rebounded strongly near $1.40, corresponding to the 78.6% Fibonacci retracement level. Trading volume also increased by 22.47% to $12.67 billion, suggesting that the move was accompanied by genuine buying inflows rather than a simple dead-cat bounce.
A broader market recovery also underpinned the rally. As the overall crypto market staged a relief rally, capital flowed into XRP, which had recently seen a wave of leveraged position liquidations, resulting in relative outperformance. With approximately $46 million worth of XRP long positions liquidated during the prior downturn, some analysts interpret the rebound as being amplified by position covering alongside renewed spot demand.
The key short-term question is whether XRP can maintain support at the $1.40 level. If this zone holds, a test of the next resistance near $1.60, aligned with the 61.8% Fibonacci retracement, is considered likely. Conversely, if XRP falls below $1.40, caution is warranted as a retest of the recent swing low around $1.15 cannot be ruled out.
Market participants generally view the move as a “typical relief rally following extreme oversold conditions,” while noting that confirmation of a full trend reversal is still pending. Sustained trading volume above $10 billion and a successful breakout above $1.60 could signal a transition into a more stable recovery phase; however, with market sentiment still entrenched in the “extreme fear” zone, the potential for heightened volatility remains a key risk to monitor.
*Disclaimer: This article is for investment reference purposes only, and no responsibility is assumed for any investment losses based on its content. The information provided should be interpreted solely for informational purposes.*
<저작권자 ⓒ 코인리더스 무단전재 및 재배포 금지>
|
  많이 본 기사
English 많이 본 기사
최신기사
|
