Ripple’s XRP remains in a horizontal channel as the market anticipates its price to rise. Since 21 August the XRP price was fluctuating within a narrow range that lies between $0.59 and $0.611. Currently, there is no clear direction that its price will take in the next few days. Historically, XRP is not a cryptocurrency that gains by large margins within a short period. It is less volatile than many of its competitors like bitcoin and ETH.
On 7 August the XRP price rose to $0.63 which led to speculation that it might rise above $0.65 which was the recent high, attained on 31 July. However, within a week the XRP/USDT value dropped to $0.55 where the current horizontal channel began. At the time of writing XRP is trading at $0.613. However, a bearish topping tail has formed at the end of the channel on a daily price chart. Since 9 August XRP has failed to break above the $0.62 key support levels three times. The next graph indicates what happened.
XRP Monthly Price Chart – CoinGecko
As observed on the graph, XRP is moving within a narrow range showing no appetite to rise. However, any pronounced XRP price move may lead to a quick reaction from the market. For instance, when the XRP price rose to $0.63 on 7 August traders increased their bets on the contracts tied to the coin. Their aim was to profit from the movement. At that time, the XRP Estimated Leverage Ratio (ELR) was at 0.060. Simply, the ELR shows the leverage the traders are willing to bet on their positions. If the ELR increases it means that the traders have confidence in the asset. If it falls it shows that their trust in the asset has decreased.
Basically, the investors have been taking a cautious approach on XRP which might have dampened its bullish outlook. Their cautious approach was reflected in the Weighted Sentiment metric which is nearing a negative zone. The Weighted Sentiment is a metric that gauges whether the market feels positive or negative about the performance of a cryptocurrency. A rising Weighted Sentiment shows that confidence is increasing. On the other hand, a falling one shows that it is decreasing.
XRP Price Prediction
Despite the fact that XRP has been struggling for several weeks now. There are signs that its price may rise. First, its fundamentals show a possible future bullish outlook. For example, data from Santiment shows that the amount of XRP on the exchanges is low.
XRP supply on exchanges: Santiment
According to the data, only 2.65 million XRP tokens are held on exchange which shows very low selling pressure. The token’s market value to realized value (MVRV) also shows a bullish cue. Basically, the XRP MVRV ratio recently increased from -2.87% to +5.33% indicating that the tokens acquired within the last 30 days are in a profit zone. That state shows bullishness in the market.
As seen earlier on XRP is building momentum around $0.61. Based on the bullish momentum that is building in the XRP market its price may gradually rise over the coming days. An XRP price spike is not surprising considering that a United States court has cleared Ripple of any wrongdoing on the allegations that the SEC had filed against it. There is also rumour circulating in the cryptocurrency market that an XRP exchange traded fund (ETF) may be on the way. Therefore, if Ripple receives the support it deserves in the market the XRP price may surge towards $5.
At the moment the strongest XRP support level is at $0.60 while the key resistance point is at $0.62. If its price rises above $0.62 the market may expect to see a strong rally. The good thing is that the XRP price is above some key moving averages such as EMA 28, EMA 139 and EMA 200 as the next picture shows.
XRP Price Chart – Morpher
The XRP 4-hour chart shows that the coin is bullish. However, it has very low volatility. Sadly, though, the future Ichimoku cloud is almost flat which shows that its bullish momentum may be weakening.
Since the cryptocurrency’s bullish momentum has just picked up, traders should be cautious in the short-term. There is a need to verify its price direction within the next few days. Also, it is important to monitor the prevailing market sentiment and the performance of the leading cryptocurrencies. Generally, though, most major cryptocurrencies are in green. For example, bitcoin has gained by 4.1% within the last 24 hours and ETH by 2.9%. Solana, Dogecoin (DOGE) and Cardano (ADA) are some of the crypto assets that have performed well within the last 24 hours. Most of these digital assets are also in green on the weekly chart, showing that the bullish momentum has been building over some days.
