Why is XRP price up today?

XRP (XRP) pared some losses following the latest market crash, with 7% daily gains over the last 24 hours to trade at $2.30.

The altcoin trades 12% above the 24-hour low of $2.06 as the crypto market sentiment shows signs of recovery.

XRP Ledger’s upgrade proposal

One reason for XRP’s price increase is Ripple’s recent proposal to upgrade to the XRP Ledger, which is aimed at introducing native programmability. 

Key takeaways:

A proposal by RippleX developers on the DEV Community provides a detailed account of the proposed XRP Ledger (XRPL) upgrade.

The upgrade focuses on enhancing XRPL’s programmability through the integration of WebAssembly (WASM) for smart contracts.

This would mark one of the most substantial changes to XRPL since its inception in 2013. 

This enhancement potentially positions XRPL as a competitor in decentralized finance (DeFi) and institutional applications.

This increased functionality could boost investor confidence as it expands XRP’s potential beyond cross-border payments.

XRP price eyes V-shaped recovery to $2.60

XRP’s price action has been nurturing a V-shaped recovery chart pattern on the four-hour chart, as shown below.

A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. 

It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.

XRP appears to be on a similar trajectory and now trades below a supply zone between $2.52 and $2.54, which are also the 50-day and 100-day simple moving averages (SMAs).

Bulls must push XRP above this level in order to increase the chances of the price rising to the neckline at $2.60 to complete the V-pattern for a 12% gain.

The relative strength index, or RSI, has rebounded from oversold conditions at 17 on Feb. 25 to 39 on Feb. 26, suggesting that the bulls are attempting to make a comeback.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.