XRP Signals Buyers After Dip Near $1.80

What to Know:

• XRP demonstrated resilience in Wednesday’s session, recovering from early weakness despite muted overall market participation.
• VivoPower’s partnership with Lean Ventures to acquire Ripple Labs equity provided a modest lift to XRP sentiment.
• Technical analysis reveals XRP is consolidating just below the $1.87–$1.90 supply zone, with traders watching for a potential breakout.

XRP showed notable strength in Wednesday’s trading, advancing 4.26% to $1.85. This recovery occurred despite relatively low trading volumes, suggesting the price movement was driven by specific catalysts rather than broad market momentum. The announcement of VivoPower’s partnership to acquire Ripple Labs equity appears to have played a role in bolstering investor sentiment toward XRP. The question now is whether this momentum can be sustained.

Ripple Equity Acquisition Boosts Sentiment

The news that VivoPower, in collaboration with Lean Ventures, is seeking to acquire Ripple Labs equity has injected a dose of optimism into the XRP market. This joint venture aims to secure up to $300 million in Ripple shares for institutional and qualified retail investors in South Korea. VivoPower anticipates generating approximately $75 million in management and performance fees over the next three years. While this deal doesn’t directly involve the purchase of XRP tokens, it signifies a strong institutional interest in assets associated with Ripple. This is particularly significant given the ongoing regulatory uncertainties surrounding XRP. The move may signal a broader recognition of Ripple’s underlying technology and its potential applications in the financial sector, further driving demand for exposure to Ripple-linked assets.

XRP Price Action and Market Dynamics

Despite the positive news surrounding the Ripple equity acquisition, XRP’s gains lagged the broader crypto market by approximately 1.2%. This suggests that the price increase was primarily fueled by token-specific factors rather than a widespread risk-on sentiment across the cryptocurrency landscape. After an initial dip to $1.797 in the European trading session, buyers emerged during U.S. hours, pushing XRP towards its session highs. This rebound established a short-term support level above $1.84, but the relatively low volume indicates that institutional investors remain cautious at these price levels. The fact that XRP managed to close near its highs despite the lighter trading volume suggests controlled accumulation, implying a strategic buying approach rather than impulsive, momentum-driven trading.

Technical Analysis Points to Key Resistance Levels for XRP

Late in the trading session, XRP experienced concentrated bursts of institutional-sized trading activity, which significantly altered its intraday structure. Volume spikes at 03:25 and 03:26 UTC, totaling nearly 19 million tokens, propelled the price decisively through the $1.84 resistance area, effectively turning it into a short-term support level. These flows contributed to the completion of an ascending intraday channel from the $1.797 low, marking the most significant technical development of the day. However, the overall volume profile remains subdued, raising concerns about the sustainability of this upward movement without broader market participation. From a technical standpoint, XRP is currently consolidating just below the $1.87–$1.90 supply zone, where sellers have consistently emerged in recent sessions.

Traders Eye Potential Breakout for XRP

With XRP now maintaining a position above $1.84, the focus shifts to whether the price can attract further buying interest and break through the $1.87–$1.90 resistance band. A clean break above this level would signal a broader acceptance of higher prices and could potentially trigger a more sustained upward trend. Conversely, a failure to extend beyond this resistance could lead to XRP falling back into its recent consolidation range. Currently, the setup reflects cautious optimism, as the late-session accumulation has improved the technical structure. However, the below-average volume indicates that conviction remains limited, and the market is waiting for a stronger catalyst to drive further price appreciation. Monitoring Bitcoin’s price action and any regulatory updates regarding Ripple will be crucial in determining XRP’s next move.

In conclusion, XRP’s recent price action demonstrates underlying strength amid cautious market sentiment. The Ripple equity acquisition news provided a positive backdrop, and the technical setup suggests a potential for further gains if key resistance levels are breached. However, sustained upward momentum will likely require increased trading volume and broader market participation.

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Source: Original article