Yerevan (CoinChapter.com) — XRP and Dogecoin held their gains despite short-term profit-taking threats, rising by incredible percentages in the running weekly session amid an overall crypto market boom.
The XRP Rebound Rally Continues
The XRP/USD exchange rate jumped 11.32 percent to hit an intraday high of $1.086 during the Asia-Pacific trading session on Wednesday. At its sessional low, the pair’s bid was $0.626. The difference between the latest top and the previous bottom stands at 73.44 percent (data from Binance).
The daily chart showed XRP as an oversold token, based on its Relative Strength Index readings. Meanwhile, the Ripple Labs cryptocurrency sustained its year-on-year bullish bias by maintaining strong technical footing near its 200-day simple moving average (200-day SMA; the orange wave in the chart above).
Fundamentals also favored XRP. A rumor started circulating on social media platforms that Ripple Labs might agree to reach an out-of-court settlement with the US Securities and Exchange Commission (SEC), paving the way for XRP to shed its “illegal securities” tag. The claims made by a random Twitterati remain unconfirmed by both Ripple Labs and the SEC.
Dogecoin Wows Bulls
Limited than XRP, but Dogecoin also managed to hold onto its gains heading into the London morning session on Wednesday. The meme cryptocurrency rallied exponentially all across 2021, hitting $0.76 following a 15,337 percent pump, and risked peak buyers into losing half of their investments as prices crashed by almost 75 percent from the record peak.
But despite the pain, Dogecoin showed signs of returning to its bullish mood. It rose by almost 90 percent after bottoming out at $0.195. It now holds those short-term gains on Tesla CEO Elon Musk’s efforts to improve its underlying blockchain. Dogecoin, despite being a pro-inflation token, holds its bullish bias because of strong backings from hugely-followed billionaire investors, also including Mark Cuban.
Technically, Dogecoin holds above a support confluence of its 61.8% Fibonacci retracement level and the 50-day simple moving average (50-day SMA; the blue wave). Meanwhile, it eyes 50% Fib level of $0.41 as its short-term upside target.
Why is Crypto Market Rallying?
In retrospect, Elon Musk caused the cryptocurrency market crash last week, including Dogecoin and XRP.
Bitcoin and all of its rival assets suffered major setbacks in their bullish rallies after Musk removed bitcoin payment support from Tesla’s checkout option, citing environmental issues concerning the cryptocurrency’s mining process. He later engaged in a tit-for-tat Twitter war with crypto influencers, eventually reaching a point where he said Tesla would sell all its $1.5bn worth of BTC holdings.
However, Musk later refuted from going ahead with the massive bitcoin dump.
Michael Saylor, the CEO of MicroStrategy, a Nasdaq-listed business intelligence firm holding more than 92,000 BTC in its balance sheets, hosted a meeting between Musk and the leading Bitcoin miners in North America. They agreed to form a council that would focus on installing green energy methods to mine the cryptocurrency. Meanwhile, it would also keep a tab on Bitcoin’s carbon footprints.
The news seemed to have played in the favor of cryptocurrency markets. Almost every top-cap token is up from its local bottom, including XRP and Dogecoin.