XRP to reclaim $3 after brief market slump: Check forecast

The cryptocurrency has been bullish since the start of the week, but experienced a flash dump on Tuesday due to the crisis in the Middle East. However, the prices of the leading cryptocurrencies are now bouncing back and could be set to rally higher in the near term.

Bitcoin dropped to the $110k region but is now trading above $111,300, while Ether has reclaimed its value above $4,300. Ripple’s XRP also dropped below $3 and could be gearing up for another rally above that psychological level.

Ripple and Spain’s BBVA extend their partnership

XRP is gearing up to surge above $3 once again, and one of the major catalysts could be Ripple’s partnership with the Spanish banking giant BBVA. Ripple announced on Tuesday that it is expanding its partnership with BBVA to provide its digital asset custody technology to the Spanish bank.

With this arrangement, BBVA will leverage Ripple Custody, Ripple’s institutional-grade digital asset self-custody technology to deliver a scalable and secure custody service for tokenized assets, including crypto-assets.

Cassie Craddock, Managing Director, Europe, at Ripple, stated that this partnership is possible thanks to the EU’s Markets in Crypto-Assets regulation (MiCA). Craddock added that MiCA allows banks in the EU to launch the digital asset offerings that their customers are asking for.

$3.66 high remains a target for XRP 

The XRP/USD 4-hour chart remains bullish and efficient despite yesterday’s flash dump. XRP is now trading at $2.96 and could reclaim the $3 psychological mark over the next few hours.

The momentum indicators are also bullish, with the RSI of 57 showing that buyers are regaining control of the XRP market following weeks of volatile price action. The MACD lines are also within the bullish zone.

XRP established a low at $2.93 on Tuesday afternoon following the Middle East crisis. The low is now serving as an Inducement Liquidity (ILQ) on the 4H chart, allowing XRP to prepare for another leg up.

If the bullish trend continues, XRP could surpass Tuesday’s high of $3.035 before heading to the major resistance level at $3.3. The recent high of $3.66 remains XRP’s medium-term target, as hitting it could allow the cryptocurrency to set a new all-time high above $4.0. Analysts are still optimistic about XRP hitting the $6 mark over the next few weeks or months.

While the ILQ at $2.93 currently holds, it is not a strong support, and XRP could dip lower if the broader market undergoes a correction. The support level at $2.70 formed earlier this month should hold in case the market decides to extend its correction.

Regardless, the XRP/USD chart is bullish at the moment, and buyers could push XRP’s price higher over the next few hours and days.

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