XRP Shows Resilience After Testing $2.00 Support with Increased Institutional Interest
XRP has demonstrated a resurgence in strength after recently testing its support level at $2.00, driven by a growing interest from institutional investors. As of Tuesday, the digital asset was trading at $2.22, reflecting a modest increase amid broader market consolidation. This uptick occurs in the context of rising concerns regarding trade tariffs and economic uncertainty in the United States, further complicating the market landscape. Notably, XRP is gaining traction among institutional investors, with companies like VivoPower beginning to incorporate digital asset reserves into their treasury strategies.
Institutional Demand Fuels Optimism for XRP
The decline in XRP’s price from its peak of $2.64 in May to a support level of $2.07 was largely influenced by heightened tensions surrounding tariffs set forth by former President Donald Trump. Following a court ruling that challenged these tariffs last week, volatility ensued in the global economic environment. Although an appeals court has momentarily halted the ruling, lingering uncertainties persist. However, the downward risks for XRP seem to be diminishing as a shift towards risk-on sentiment is observed, particularly with companies like VivoPower investing in XRP-focused treasury strategies.
VivoPower’s Strategic Move Towards Digital Assets
VivoPower, a prominent renewable energy firm, has recently declared its intention to allocate $121 million towards creating an XRP-centric treasury reserve. This initiative will utilize the over-the-counter (OTC) infrastructure provided by BitGo, as stated in their announcement on Tuesday. Kevin Chin, the CEO of VivoPower, emphasized the company’s commitment to enhancing shareholder value through the development of a robust digital asset treasury strategy. He highlighted the importance of collaborating with leading digital asset firms like BitGo to achieve this goal.
Webus International Plans XRP Integration
In a related development, Webus International, a company focused on customizable automotive and touring services in China, revealed on Monday its plan to secure $300 million through a non-equity financing approach to establish an XRP reserve. This initiative aims to facilitate the integration of XRP payments within Webus International’s operational ecosystem, marking a significant step towards mainstream adoption of cryptocurrency in various industries.
Technical Analysis: Can XRP Maintain Its Momentum Towards $2.60?
XRP’s price currently remains above a vital ascending trendline after rebounding from the 200-day Exponential Moving Average (EMA) support at $2.07. The Relative Strength Index (RSI) is showing signs of an upward trend, nearing the neutral midline of 50, which could indicate potential positive momentum in the upcoming sessions. Traders are advised to watch for a buy signal from the Moving Average Convergence Divergence (MACD) indicator, which may encourage movement towards the target of $2.60. A confirmed buy signal would occur if the blue MACD line crosses above the red signal line, prompting increased buying interest in XRP.
Short-Term Bullish Indicators for XRP
The bullish sentiment for XRP is supported by shorter time frame indicators, as seen in the 4-hour chart. The MACD has maintained a buy signal since Saturday and is close to surpassing the zero line (0.00). If traders continue to purchase XRP in response to this buy signal and the expanding green histogram, the asset’s price trajectory is likely to remain upward. Additionally, the RSI in this timeframe supports the bullish narrative, as it approaches overbought territory, suggesting a higher probability of continued price gains for XRP.
Resistance Levels and Potential Pullbacks for XRP
However, XRP currently trades below the 100-day and 50-day Exponential Moving Averages (EMAs), which may hinder or reverse the upward trend around the $2.26 and $2.27 thresholds. Furthermore, previously encountered selling pressure at $2.35 could pose additional risks of a pullback or consolidation, especially as traders may engage in profit-taking during XRP’s recovery phase.
