Can XRP price trigger a 9% recovery rally after US Treasury Department called for SVB depositor reimbursement?
- XRP price suggests a 9% recovery to $0.393 on the promise of restored SVB depositor wholeness.
- Ripple could break past the 50- and 100-day EMAs at $0.381 and $0.386, respectively, before completing the V-shaped boomerang.
- The bullish thesis would be invalidated if the altcoin slips below the $0.364 support level.
XRP price is on course to regain all the ground lost since the topple of Silicon Valley Bank (SVB) on March 10, after identifying a decisive pivot from which to scale a recovery. The boomerang effect is attributed to reassurances by Ripple Labs CEO, Brad Garlinghouse, that despite some of its cash being held at SVB, the firm “remains in a strong financial position.”
Garlinghouse: Some of Ripple’s Cash Is at SVB, but Firm’‘Remains in a Strong Financial Position’ - CryptoGlobe via BTCnews for iOS https://t.co/e59FE2Dcfj
— BTCnews iOS App (@btcnewsapp) March 13, 2023
Other positive influences include the USDC stablecon regaining its peg, according to a recent statement.
XRP price targets 9% upswing to $0.393
XRP price is trading with a bullish bias after a tumultuous weekend that sent a negative wave across the crypto market. The collapse of Silicon Valley Bank and the subsequent depegging of the USDC stablecoin from the dollar were both catastrophic incidents that worsened the already negative market sentiment. However, following recent developments, investors now have renewed hope.
At the time of writing, XRP price is auctioning for $0.367 with a 26.22% increase in 24-hour trading volume to $1.405 billion. The token’s market value is up 1% in the last day as bullish momentum increases. If buyers increase their presence in the market, Ripple price could ascend to tag the 50-day Exponential Moving Average (EMA) at $0.381, or the 100-day EMA at $$0.386 resistance levels.
A decisive flip of these roadblocks into support levels could set the tone for XRP price to tag the $0.393 resistance level last visited on March 9 before the two crises hit. Such a move would denote a 9.57% climb from current levels as shown in the twelve-hour chart below.
XRP/USDT 12-hour chart
On the downside, failure to break past the overhead barriers could suppress XRP price further, causing its market value to plummet below the immediate support level at $0.364. A daily candlestick close below this level could invalidate the bullish premise.
In such a case, XRP price could drop to retest the Saturday low of $0.357 or in dire situations, move below the $0.350 level and revisit the $0.341 support level.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
