- XRP surged by 10%, signaling a potential shift from its bearish trend
- Ripple’s partnership with the DIFC Innovation Hub could boost its adoption
Popular altcoin XRP grabbed a lot of market attention recently after it climbed by 10% on the price charts in the last 24 hours. After spending a lot of time heading south, could this surge be a sign of changing market sentiment. Will this momentum last?
Here, it’s worth pointing out that XRP seemed to be heading towards important resistance levels at $0.6487 and $0.7262, respectively.
Source: TradingView
Is Ripple’s DIFC partnership revolutionary?
Ripple’s collaboration with the Dubai International Financial Centre (DIFC) Innovation Hub has made ripples.
This initiative is aimed at fostering financial innovation within the Middle East. Being one of the key world financial epicenters, if Ripple integrates into this ecosystem significantly, it might boost XRP adoption. The demand for Ripple may rise as more banks and start-ups adopt Ripple’s technology, thereby heating up the ongoing rally.
Liquidity Insights
Additionally, as mentioned, XRP was heading towards important resistance levels at $0.6487 and $0.7262, at press time. In fact, the recently released liquidation heatmap data indicated heavy liquidation zones between $0.55 and $0.65, pointing to strong selling pressure.
This, after XRP dipped below $0.55 a while back and liquidated a number of positions, leading to a temporary pullback.
However, it has since stabilized around thin liquidity areas near 50, suggesting that buyers could be accumulating XRP at this level. This might signal a third phase if it can sustained overcoming the strong rejection point at $0.5657.
Source: Coinglass
Will XRP attain a breakthrough?
If that is the case, XRP will witness a short squeeze.This will, in turn, lead to further hikes in price following the rush to cover the positions left.
Conversely, if XRP fails to hold above $0.5657, it could face a setback on the charts.
What’s next for XRP?
XRP’s recent price action and its partnership with DIFC may sustain this bull run. XRP’s ability to overcome these resistance levels will determine what happens next, as observed by the market. The coming days are crucial in establishing whether this rally is sustainable or not.
