XRP’s price has rebounded over the past few days, climbing from a low of $1.8890 last week to over $2.30.
Ripple (XRP) ose largely due to last week’s rebound in the crypto and stock markets. Top U.S. indices like the Dow Jones, S&P 500, and Nasdaq 100 each gained more than 1.5% on Friday.
XRP also jumped on growing optimism that the Securities and Exchange Commission will approve a spot ETF rose. Polymarket data shows that the odds of approval have risen to 76%. A spot XRP ETF would likely attract more inflows from Wall Street investors.
There is also speculation that the SEC will drop its lawsuit against Ripple Labs. This would benefit the company by allowing its management to secure more deals with banks and other financial institutions in the money transfer industry.
Ripple Labs hopes these deals will strengthen its position against SWIFT, which handles over $150 trillion in transactions annually.
Further, XRP price has jumped as some whales continue to accumulate the coin. One such whale spent $24.2 million to buy 10.3 million tokens on Bitfinex on Monday. Whale accumulation is one of the top indicators in crypto fundamental analysis.
XRP price rose after hitting key support
Technically, the ongoing XRP rebound happened as bulls defended key support at $1.9447. This level is significant because Ripple has failed to drop below that price several times since December. The only successful breach happened on February 3, which turned out to be a false breakout.
The $1.9447 level also serves as the neckline of a head-and-shoulders pattern that has been forming since November. Its head section is at $3.40, while the left and right shoulders are at $3.00.
Therefore, a drop below $1.9445, which also aligns with the 200-day moving average, could signal further losses, potentially driving XRP down to the psychological support at $1.00.
XRP bulls need to push the price above the right shoulder at $3.00 to invalidate the head-and-shoulders pattern. If this happens, the next level to watch will be $3.40, the highest level this year. A successful breakout could signal further gains toward $5.00.
