On January 2, the XRP price fell 11% in less than an hour, allowing market makers to amass sell-stop liquidity below the $0.316 support level.
Because this move was quickly followed by a swift recovery above the mentioned level, it indicated a manipulation move to appease the weak holders while allowing long-term holders or smart money to accumulate.
As a result, the XRP price has rebounded 16% from its January 2 low of $0.30. As the remittance token sits above $0.347, investors should expect the rise to continue, backed by the Relative Strength Index (RSI), which has managed to break through and stay above the midpoint.
This resumption of purchasing pressure is anticipated to push the XRP price back up to the immediate hurdle of $0.374. Ripple bulls may be able to break through this hurdle and return to the equal highs made around $0.400.
While the future for bulls appears promising, investors should keep an eye on the Bitcoin price.
Other cryptocurrencies, including Ripple, will be affected by a quick drop in the large crypto. Furthermore, a breach of the $0.316 support level, which converts it to a resistance level, will invalidate the bullish thesis by resulting in a lower low.
In such a circumstance, the XRP price may return to the $0.288 support level, where purchasers might regroup and try again for a rebound rally.
