- XRP could aim at the overhead $0.54 resistance, but BTC’s price fluctuations could impact this goal.
- XRP is seen as a discounted buy despite significant selling pressure following a recent upswing.
- XRP led a market rally, gaining 3% and reaching $0.52 during intraday trading on the 17th of May.
Discover the latest insights on XRP’s performance, potential price movements, and the critical factors influencing this leading altcoin in our in-depth analysis.
Can XRP bulls defend the crucial $0.5 mark?
In the recent rally, XRP successfully upheld the 78.6% Fibonacci level at $0.48, a critical support range. XRP has been fluctuating between the 61.8% and 78.6% Fibonacci retracement levels, indicating a tight trading range. Reclaiming and maintaining this level could propel XRP towards the $0.54 mark, representing a possible 10% gain for bulls.
However, several key technical indicators have yet to confirm a strong bullish momentum. The Relative Strength Index (RSI) faced rejection at the mid-range, suggesting that buying pressure, while present, was insufficient to drive XRP significantly higher. Similarly, the Chaikin Money Flow (CMF) showed an improvement but remained below the zero line, indicating that while inflows have increased, they are not yet substantial enough to suggest a solid bullish trend.
XRP bulls need to staunchly defend the 78.6% Fibonacci level to capitalize on the potential 10% upside. Failure to do so could result in the cryptocurrency falling to $0.45 or $0.41, as short-sellers might take control.
XRP price prediction: Could massive outflows hinder recovery?
Massive outflows from XRP spot markets have cast a shadow over the altcoin’s recovery potential. According to Coinglass data, the XRP spot market saw outflows of $24.99 million on June 17th, suggesting that some investors opted to reduce risk following the recent upswing.
If these outflows continue, they could exacerbate bearish sentiment and delay any potential recovery. However, data from Santiment, a crypto analytics platform, suggests that crowd sentiment towards XRP has reached 2024 lows, which could present a lucrative buying opportunity for patient traders waiting for a less favorable market sentiment.
“Patient traders who have been waiting for the crowd to give up on these large-cap altcoins may finally have their buying opportunity with FOMO at a 2024 low.”
Despite a current weak price chart, this view has been echoed by other analysts such as BCBacker on X (formerly known as Twitter), who believe that long-term indicators for XRP are showing signs akin to those that preceded significant rallies in 2017 and 2021. However, the upcoming movements of Bitcoin (BTC) remain a crucial factor in determining XRP’s future price direction. A further decline in BTC could complicate XRP’s recovery efforts.
Conclusion
In summary, XRP’s immediate future hinges on its ability to sustain key support levels and the overall market sentiment, particularly from Bitcoin’s performance. While there is potential for a 10% increase, driven by a successful defense of crucial support levels, significant outflows and weak technical indicators pose considerable risks. Traders should stay vigilant and consider broader market trends before making any decisions.
