XRP Rises 12% and Restores $3 Level with Strong Support

The price of XRP has risen 12% over the past 24 hours, recovering a price level of $3 after falling on Monday. The cryptocurrency fell to a low of $2.73 yesterday but has since recovered. It is now trading at $3.11 after hitting a daily high of $3.14.

AS INDICATED BY A POST ON X BY EGRAG CRYPTO, XRP IS CURRENTLY KEEPING ITS 4-HOUR CANDLES ABOVE THE 21-DAY EXPONENTIAL MOVING AVERAGE (EMA).This trend is bullish in the short to medium term. The line also acts as support for the altcoin price action on the 4-hour chart.

21-day exponential moving average remains strong as support

Although XRP has encountered resistance at the 21-day EMA several times, the altcoin was finally able to keep the candlesticks above it. On the daily chart, the situation is also positive, with the 21-day EMA remaining below the cryptocurrency’s price movement, acting as a support level.

Analyst Ali Martinez noted in a post on X on Tuesday that whales have started buying XRP in increasing numbers. These large holders have purchased 120 million tokens as the price of the cryptocurrency drops below $3.

Investors are increasingly optimistic about the price of the XRP token in the future. The Relative Strength Index (RSI) currently stands at 61.76 for a digital asset. This figure means that there are more buyers than sellers and the demand for the cryptocurrency is very high. The direction of the line suggests that the uptrend will most likely continue.

In contrast, the MACD showed a bearish divergence for XRP as the signal line (red) moved above the MACD (blue) line with the chart turning red. However, the two lines are still very close, suggesting that the bulls have not given up and a retest of $3.3 may be on the horizon.

Trump Administration Boosts Debate on Future of Cryptocurrencies

The Trump administration’s inauguration has sparked conversations about the future of cryptocurrencies within the financial sector. With President Trump adopting a pro-cryptocurrency stance and recent regulatory changes, such as Gary Gensler’s departure as chairman of the SEC, the financial industry is looking for major innovations. Major banking institutions, including Bank of America, are pointing to potential adoption of digital assets such as Bitcoin (BTC) and XRP, provided there are clearer regulations.

Bank of America’s Point of View

In an interview with Squawk Box on CNBC, Bank of America CEO Brian Moynihan shared insights into how the bank is preparing to integrate cryptocurrencies. Moynihan stressed that regulatory clarity will play a crucial role in determining the extent to which digital assets can be integrated into the traditional banking system.

He stressed that Bank of America was preparing for a possible shift in the financial landscape, pointing to the bank’s extensive portfolio of cryptocurrency-related patents as evidence of its readiness. However, he emphasized that a strong U.S. dollar remains essential to the country’s economic stability, as he considered cryptocurrencies to be complementary to fiat currency rather than competitive.

The evolving regulatory environment has provoked mixed reactions from industry leaders. Billionaire investor Ray Dalio, founder of Bridgewater Associates, shared his cautious stance on Bitcoin’s potential as a central bank’s reserve asset. In a separate interview, he acknowledged Bitcoin as a tool for diversification but expressed concerns about its suitability for governments.

Dalio expressed skepticism about adopting Bitcoin as a backup asset, noting that it is not yet viable for central banks. Despite these concerns, he highlighted the importance of hedging against economic uncertainty through assets such as gold and bitcoin. “Digital assets represent a new, interesting and innovative technology, and we have invested in guarding capabilities and exploring smart contracts.”

XRP outperforms market while Bitcoin and Ethereum fall

XRP was a strong performer during the DeepSeek saga, attracting $2.1 million in weekly flows. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) suffered a combined outflow of $541 million, raising questions about whether XRP It has become a safer option for investors.

XRP outperforms other cryptocurrency streams

According to James Butterville, head of research at CoinShares, XRP recorded impressive weekly inflows of $2.1 million. This brings its monthly flows to $92.6 million.

Meanwhile, XRP’s performance has yielded impressive returns so far with inflows of $93 million. By comparison, Bitcoin and Ethereum faced mass outflows of $541 million, with Bitcoin losing $442 million and Ethereum seeing outflows of $99.2 million.

Other cryptocurrencies such as Solana (SOL) and Litecoin (LTC) also faced outflows of $2 million and $0.2 million, respectively. Meanwhile, Cardano (ADA) and Chainlink (LINK) recorded modest inflows of $0.3 million and $0.1 million.

However, XRP stands out as the best-performing digital asset, demonstrating its ability to attract investor confidence even during a market slowdown.

Market sentiment remains optimistic

Despite the lag in Bitcoin and Ethereum, public sentiment in the cryptocurrency market remains upbeat. High-profile moves by companies such as Micro Strategy and Meta planet have contributed to these bullish expectations.

Micro Strategy recently added more than 10,000 BTC to its holdings, while Meta planet announced raising $745 million to invest in Bitcoin.

Looking ahead, the possibility of approving an XRP exchange-traded fund (ETF) in the US, along with the listing of XRP in the US Strategic Reserve, could push the price of the cryptocurrency significantly higher this year. It will be interesting to see it.