XRP Surges 13%: Key Indicators Signal Potential Recovery

XRP has recently demonstrated significant signs of a rebound, recovering 50% of its previous losses. Currently trading at $2.29, the cryptocurrency is nearing a critical resistance level of $2.33.

To sustain this upward trend, XRP will require consistent backing from the investor community, and early signs suggest it is receiving that support.

XRP Investors Display Confidence

The Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) metric reveals that many long-term holders (LTHs) are currently profiting. This factor is vital for XRP's price stability, as LTHs generally refrain from selling when their profits rise, which in turn fosters a more robust support structure for the cryptocurrency's price movement.

Historically, instances where the LTH NUPL indicator reaches the Euphoria threshold have frequently led to price spikes. Analysts are hopeful that XRP could replicate this behavior if the prevailing conditions persist, especially with LTHs remaining steadfast in their holdings.

Macro momentum indicators signal a positive outlook as the Price DAA Divergence indicator is currently showing a buying signal. This divergence illustrates that both the price and the number of daily active addresses (DAA) are on the rise, hinting at increased participation from investors.

An uptick in active addresses suggests that traders are placing their confidence in XRP’s prospective growth. Coupled with the price increase, this trend could further facilitate the altcoin's recovery.

XRP Price Must Overcome Resistance

With a recent 13% surge, XRP trading at $2.29 has managed to recover half of its earlier 22% downturn. The critical $2.33 resistance is now under examination, and surpassing this level is essential for any further upward trajectory. Should it clear this barrier, XRP could rise towards $2.70, achieving a full restoration of its recent losses while aiming for even higher prices.

The factors detailed above suggest that XRP possesses the necessary momentum to foster ongoing recovery. Support from long-term holders, alongside buy signals from technical indicators, establish a solid bedrock for future price growth.

However, should XRP fail to breach the $2.33 resistance and instead retrace back down to $2.14 or lower, the optimistic outlook may diminish significantly. A decline to $1.94 would erase the recent gains and signal a return to bearish trends. Thus, maintaining support at $2.33 is essential to preserving the current positive trajectory.