The XRP price has been rebounded over the past few days, rising above $2.30 from the lowest $1.8890 last week.
Ripple (XRP) is primarily due to last week's rebounds in the crypto and stock markets. Top US indices such as the Dow Jones, the S&P 500 and the Nasdaq 100 won more than 1.5% on Friday.
XRP also jumped at the growth of optimism that the Securities and Exchange Commission would approve Spot ETF Rose. Multilayer data shows that the probability of approval has increased to 76%. Spot XRP ETFs could attract more influx from Wall Street investors.
There is also speculation that the SEC will withdraw the lawsuit against Ripple Labs. This will benefit the company by ensuring that its management can secure more transactions with banks and other financial institutions in the remittance industry.
Ripple Labs hopes that these transactions will strengthen their position in Swift, which processes more than $150 trillion in transactions each year.
Furthermore, XRP prices have skyrocketed as some whales continued to accumulate coins. One such whales spent $24.2 million to buy 10.3 million tokens on Bitfinex on Monday. Whale accumulation is one of the best indicators in basic cryptography analysis.
XRP prices rose after reaching key support
Technically, the ongoing XRP rebound occurred as the Bulls defended key support at $1.9447. This level is important as Ripple has not been able to lower its prices several times since December. The only successful violation occurred on February 3rd, which turned out to be an incorrect breakout.
The $1.9447 level also serves as a neckline for the head and shoulder patterns that have been formed since November. The head section is $3.40 and the left and right shoulders are $3.00.
So a drop below $1.9445 along with the 200-day moving average could indicate further losses, driving XRP to psychological support at $1.00.
The XRP Bulls will need to push up the price above their right shoulder at $3.00 to disable head and shoulder patterns. If this happens, the next level to watch is $3.40, the highest level this year. A successful breakout could potentially show profits towards another $5.00.
