XRP market cap increases by $600m amid 8% bounce from two-year low

A recent XRP rally has provided a brief period of relief for cryptocurrency bulls, although the long-term outlook continues to look bleak

Ripple’s XRP token has surged by more than 8% in the past two days after falling to a brutal low of $0.20 on Monday.

The market cap of XRP has now increased by $600 million to around $9.6 billion as a result of the rally.

While the short-term perspective looks positive for XRP, the long-term picture continues to look bleak following a death cross on the daily chart on July 19.

XRP now needs to rally back above the $0.23 level, which is now resistance after initially providing support over the past few months.

However, while the fundamentals surrounding XRP continue to look strong, with $20 million being invested into MoneyGram earlier this week, the price action depends on the path Bitcoin takes as we approach the end of the year.

Bitcoin has suffered a woeful month, with a fall of more than 30% resulting in an exponential moving average death cross on the daily chart.

Several analysts are now predicting that Bitcoin may fall to as low as $3,150 before gaining more momentum to the upside.

If these Bitcoin predictions come to fruition, the value of XRP will likely continue to nosedive to levels last seen prior to the 2017 bull market, with $0.18 and $0.13 being two key targets to the downside.

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