XRP Price Soars 8% To Flip BNB As The Third-Largest Crypto – What’s Next?

The XRP price soared 8% over the past 24 hours to trade at $2.03 as of 1:10 a.m. EST on trading volume that skyrocketed 211% to $4.3 billion.

XRP recovered prices above $2, boosting its market capitalization to about $123 million, per CoinMarketCap. This puts it back in third place among crypto assets, outranking BNB with a market value of over $120 million.

The recent rally comes as the digital asset market shows renewed strength, as the crypto space jumped over 2% to a $3.07 trillion market capitalization. This surge saw BTC recover above the $90,000 psychological resistance, as ETH continued to trade above the $3,000 area.

Moreover, the US spot XRP exchange-traded funds (ETFs) continue to defy market volatility, maintaining a perfect streak of daily inflows, according to SoSoValue data.

Can the price of XRP continue soaring in the long term?

XRP Price Breaks Out – Poised For A Sustained Surge

The XRP price is showing signs of a sustained surge after breaking out of the falling wedge pattern and trading continuously above the lower Fibonacci support level at $1.91.

This surge comes as the Ripple token price stages a recovery, after a sustained downtrend that saw XRP plunge from an all-time high of around $3.66.

XRP dropping was further fueled when the price of XRP dropped below both the 50-day and 200-day Simple Moving Averages (SMAs), forming a death cross around $2.63.

The drop drove the price of XRP to cross significant Fibonacci support levels, with the $1.90 acting as the recent demand area.

This area has allowed the bulls to stage a recovery, as the price of the Ripple token broke out of the falling wedge and crossed the 50-day SMA ($2.01).

The Moving Average Convergence Divergence (MACD) has also flipped bullish, as the blue MACD line has successfully crossed above the orange signal line. The green bars forming above the neutral line also show that buyers are stepping in to drive positive momentum.

Meanwhile, the Relative Strength Index (RSI) also supports a bullish rally, as it has jumped past the 50-midline level to the current level around $58, showing that buyers are actively entering the market.

Ripple Token Price Outlook

Based on the XRP/USD chart analysis on the daily timeframe, the XRP price is poised for a sustained recovery after breaking out of the falling wedge pattern and the 50-day SMA.

Supported by the positive indicators, the Ripple token could still surge, as it targets key resistance levels on the Fibonacci Retracement chart, the next being around $2.2 and $2.45, on the 0.786 and 0.618 Fib zones. A continued rally could see XRP climb to the 200-day SMA at $2.56.

Conversely, if the RSI climbs and reaches an overbought area, sellers may start booking profits from the surge, which could see the Ripple token drop back to the $1.90 support area.

A drop below this area could see XRP plunge to the previous support area around $1.79, acting as a cushion against downward pressure. 

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