XRP price rebounded by over 5% on Wednesday as the crypto market rebounded. It jumped to $1.4200, up by nearly 30% from its lowest level this month. Ripple (XRP) token soared, with its market capitalization rising to over $86.6 billion. The main reason for the jump was the broader crypto market rally, lifting the total market capitalization of all tokens to over $2.4 trillion.
Bitcoin jumped to $66,500, while Ethereum approached the key resistance level at $2,000. The rally coincided with the ongoing recovery of the broader financial market. Futures tied to the Dow Jones rose by over 200 points, while those linked to the Nasdaq 100 and S&P 500 rose by 125 and 30 points, respectively. XRP demand continued rising, with futures open interest increasing from this week’s low and spot trade volume topping $3.1 billion.
The rebound occurred after a doji candlestick formed on Tuesday, a common bullish reversal signal in technical analysis, and after XRP carved a double-bottom pattern at $1.3435 with a neckline at $1.6617. Therefore, there is a likelihood that the token will continue rising toward the $1.6617 level, about 17.7% above current levels. However, there is still a risk that the rebound is a dead-cat bounce, resuming the downtrend if momentum fades. The uptrend would lose validity if price fails to clear key defenses and does not break above the 100-day Exponential Moving Average or flip the Supertrend indicator from red to green.
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