XRP has witnessed a strong price rebound, surging 7% on 26 February as the broader cryptocurrency market shows signs of recovery. This comes amid Ripple’s proposal for a significant upgrade to the XRP Ledger (XRPL), which could enhance its functionality and attract more investors.
XRP Gains Amid Market Volatility
The price of XRP has recovered to $2.30, marking a 12% increase from its 24-hour low of $2.06. The altcoin’s price had previously tumbled following the latest market downturn but has since pared some losses as sentiment improves.
The surge in XRP’s price is largely attributed to renewed investor confidence and anticipation surrounding a proposed XRPL upgrade, which aims to bring smart contract capabilities to the network.
Ripple’s Proposed XRP Ledger Upgrade
A major catalyst for XRP’s recent gains is Ripple’s new proposal to enhance the XRP Ledger. According to RippleX developers, the planned upgrade seeks to introduce native programmability through the integration of WebAssembly (WASM) for smart contracts.
This marks one of the most significant changes to XRPL since its inception in 2013 and could position the network as a strong competitor in the decentralised finance (DeFi) sector. The increased functionality is expected to expand XRPL’s use cases beyond cross-border payments, potentially attracting institutional interest.
Technical Indicators Signal V-Shaped Recovery
XRP’s price action indicates a potential V-shaped recovery on the four-hour chart, a bullish pattern that suggests a strong rebound after a sharp decline. The pattern is confirmed when the price breaks above the resistance level at the top of the V formation, known as the neckline.
Currently, XRP is trading below a crucial supply zone between $2.52 and $2.54, which coincides with the 50-day and 100-day simple moving averages (SMA). A breakout above this level could push the price towards $2.60, completing the V-pattern and securing a 12% gain.
Bulls Eye Key Resistance Levels
For the recovery to sustain, XRP bulls must drive the price above the $2.52–$2.54 range. If successful, this move could pave the way for further gains, reinforcing bullish momentum in the market.
Additionally, the Relative Strength Index (RSI) has rebounded from oversold levels of 17 on 25 February to 39 on 26 February, indicating a shift in momentum as buyers step back into the market.
Outlook for XRP
While XRP faces key resistance levels ahead, the proposed XRPL upgrade and improving market sentiment could continue to fuel its recovery. A successful breakout above the current supply zone would validate the bullish pattern and increase the likelihood of a sustained uptrend.
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