The price of XRP jumped over 4% today, February 14, reaching its highest level in over a week. It has now rebounded more than 30% from the year’s low of $1.1145.
Summary
- XRP price has rebounded more than 30% from its lowest level this year.
- The rally coincided with the performance of other crypto prices.
- It accelerated after the United States published encouraging inflation data.
The Ripple token (XRP) has soared, reflecting the performance of the broader crypto market. Bitcoin (BTC) surged to $70,000, while other top cryptocurrencies like Zcash, Morpho and Pippin climbed more than 20%. The market cap of all coins increased by over 3.4% to over $2.38 trillion.
XRP surged as investors reacted to recent US macroeconomic data, which raised the possibility that the Federal Reserve could make further interest rate cuts this year.
The report showed that headline consumer inflation rose to 2.4% in January, well below December’s 2.6%. Core inflation, which excludes volatile food and energy products, remained at 2.5%. These figures mean that the tariffs imposed by Trump did not have a major impact on inflation.
The price of XRP also surged as the stablecoin Ripple USD continued to grow after the recent Binance listing. Its assets now exceed $1.5 billion and its usage is increasing.
Ripple Labs is working on new features that will lead to increased usage of XRP and RLUSD. They are working on the next authorized DEX feature.
The permitted DEX is similar to that of other popular DEX platforms like Uniswap and PancakeSwap, the only difference being that it controls who can place and accept offers. This will be a useful tool for institutions on the XRP Ledger.
Technical analysis of XRP price
The daily chart shows that XRP price bottomed at $1.1110 at the start of the month and has now rebounded to $1.4700. This rebound largely reflects the performance of Bitcoin and other altcoins.
Nonetheless, the token remains below the important support level at $1.807, its lowest level in April, October, November, and December last year. It also remains below the 50-day and 100-day exponential moving averages.
The coin remained below the Supertrend indicator. Therefore, even though the Ripple price has bottomed, there is a risk that the ongoing rebound could be a dead rebound.
A dead cat bounce, commonly known as a bull trap, is a situation in which a falling asset briefly rebounds and then resumes its downward trend. A full rebound for XRP will be confirmed when it breaks above the 50-day moving average and resistance at $1.807.
