Ripple’s native token, XRP, is trading at its lowest point in the past week. As of this writing, the altcoin exchanges hands at $0.53, noting an additional 3% price drop over the past 24 hours.
However, BeInCrypto’s assessment of XRP’s technical setup suggests that this decline is only temporary, and the altcoin may soon experience a rebound. Here is why.
Ripple’s Selling Pressure Begins to Weaken
Despite its price decline, XRP’s Chaikin Money Flow (CMF) has maintained an uptrend over the past few days. This indicator measures an asset’s buying and selling pressure over a specified period. As of this writing, it sits at -0.10, attempting to cross above the zero line.
As in XRP’s case, when its Chaikin Money Flow (CMF) is negative but trending upward while the price declines, it indicates the asset is still under net distribution, meaning there is overall selling pressure. However, the decreasing intensity of this selling suggests the bears are weakening, and bullish interest is starting to build.
Read more: Everything You Need To Know About Ripple vs SEC
XRP’s positive funding rate, which stands at 0.01% at press time, reflects the bullish bias that the altcoin enjoys despite the dip in its value.
The funding rate is a periodic fee used to keep the price of a perpetual futures contract aligned with the spot price of the underlying asset. When the funding rate remains positive even as the asset’s price drops, it signals that most traders are still bullish, betting on a price recovery despite the ongoing decline.
XRP Price Prediction: A Seven-Month High is at Hand
XRP is currently trading at $0.53, holding just above a key support level of $0.52. A resurgence in bullish sentiment could drive renewed demand for the altcoin, potentially triggering a rebound.
Should this happen, XRP’s price may attempt to break through resistance at $0.65. If successful, the token could rally further, eyeing its seven-month high of $0.74.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if the downward trend persists, the bulls may be unable to defend support at $0.52, and XRP’s price may drop to $0.38, invalidating the bullish prediction above.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/xrp-price-sinks-to-a-weekly-low/
2024-10-22 20:00:00
