XRP could recover if the $2.06 support level holds; check forecast

Ripple’s XRP is down 16% in the last seven days, in line with the broader cryptocurrency market. The coin has underperformed despite strategic fundamentals from the Ripple ecosystem. 

Due to the recent poor performance, XRP retested the $2.0 support level a few hours ago but has sharply bounced back. If the support level holds, XRP could rally higher in the near term.

XRP dips to $2.0 despite Ripple’s Palisade acquisition

XRP, the native coin of the Ripple ecosystem, is down 2% in he last 24 hours and is currently trading around the $2.2 mark.

The bearish performance comes as the broader cryptocurrency market has recorded a massive selloff since the start of the week.

The coin’s performance hasn’t improved despite Ripple announcing the acquisition of the cryptocurrency wallet firm Palisade earlier this week. 

While announcing this on Monday, Ripple said the acquisition aims to expand its custody capabilities, particularly for fintechs, crypto-native firms, and corporates.

The company initially launched Ripple Custody to provide financial institutions with safe and secure storage for digital assets, stablecoins, and Real World Assets (RWAs).

The acquisition of Palisade expands Ripple Custody’s offerings and use cases, allowing it to offer secure, fast, and scalable “wallet-as-a-service” technology to financial institutions. 

While commenting on the acquisition, Monica Long, President of Ripple, said,

The combination of Ripple’s bank-grade vault and Palisade’s fast, lightweight wallet makes Ripple Custody the end-to-end provider for every institutional need, from long-term storage to real-time global payments and treasury management.

Furthermore, Ripple Payments will also integrate Palisade’s technology to complement existing use cases.

This would allow Ripple to expand its services to offer subscription-based payments and value collection thanks to the high-speed transactions it will process at scale.

XRP eyes $2.5 if $2.0 support level holds

Similar to the broader cryptocurrency market, XRP/USD’s daily chart is bearish and efficient as the coin has underperformed since the start of the week.

XRP’s price began the new week negatively, losing 12% of its value during the first two weeks after getting rejected around the  50-day EMA at $2.60 over the weekend.

At press time, XRP is trading at $2.23 after dropping to the $2.0 support level on Tuesday. 

The MACD line is still within the negative territory, indicating a bearish bias for the pair. The daily RSI of 44 shows that XRP is still under selling pressure.

However, the pressure is easing, and XRP’s price could rally higher in the near term. 

If the support level at $2.06 holds, XRP could extend its recovery towards the pivot level at $2.540 over the next few hours or days. An extended bullish run would allow XRP to reclaim the resistance and TLQ level at $2.66. 

However, losing the $2.06 support level could see XRP face further selling pressure and decline towards the next daily support at $1.96.

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