Ripple (XRP) rose by 6.2% last week as market sentiment improved, pushing its price above $2.3 for the first time in a month.
The Fear and Greed Index has risen from its all-time low of 15 two weeks ago to 52 this morning, indicating a decline in market participants' anxiety about the market.
This supports cryptocurrencies like Ripple, leading to repeated bullish spikes above key moving averages.
Ripple revealed a few days ago that investors and traders may borrow Ripple (RLUSD), the project's new stablecoin, through the AAVE protocol.
This is another key step for the startup blockchain company to promote its stablecoin to become the dominant decentralized payment network.
According to CoinMarketCap, the market cap of RLUSD has increased by 400% over two months, from $60 million in early March to about $300 million at the time of writing.
The price of XRP may rise to $2.5.
According to the hourly chart, the price is stabilizing while waiting for more liquidity.
Using current Elliott Wave levels to find resistance and support areas, two options are available.
The price of XRP may reach $2.5.
The optimistic scenario predicts that XRP will surpass the fifth wave at $2.2350, initiating a new Elliott Wave that could push it to $2.5.
A slight decline towards $2.23 is likely after this strong breakout. If this support holds, the bullish trend will continue.
After the initial breakout, the price may pull back to the $2.3 barrier (current support), then rise to $2.4-$2.5 as the first realistic target.
In a negative scenario, the price of Ripple will drop below $2.12, reaching $2.03-$2.06.
The market structure looks positive given the rising prices. The likelihood of both scenarios in the bullish case is increasing.
Momentum indicators have slowed in recent hours with market stabilization, and the U.S. trading session may inject enough liquidity to achieve a breakout in either direction.