Ripple‘s XRP has recently experienced a significant decrease, plummeting over 5% and slipping beneath the $2.23 mark. This decline followed a sharp reduction in trading activity, as daily volumes shrank by 37% to $1.51 billion. The market sentiment remains cautious, with the Relative Strength Index (RSI) at 40.82 lacking a definitive bottom sign. Yet, optimism persists among some investors eyeing $4 target prices on Deribit.
Is Short-Term Selling Pressure Rising?
Yes, indications of mounting selling pressure are evident, as the 50-day EMA has transformed into resistance at $2.27. The formation of a “doji” on intraday candlesticks hints at a weak balance between buying and selling forces. Though the 200-day EMA staying under the current price supports long-term bullish perspectives, failing to restore the $2.23 support might provoke a test at the crucial $1.96 demand zone.
What Are the Long-Term Expectations for XRP?
Long-term, XRP might see significant movement. According to a technical analysis by Dark Defender, the token is poised for a pause at $5.85, potentially gearing up for a leap towards the $18.22-$23.20 zone.
Volume normalization and an RSI above 50 could signal a mid-year bullish run, culminating in profit-taking opportunities. Furthermore, a potential approval of a Spot ETF or a positive turn in the Ripple-SEC case might induce a classic supply squeeze, pulling XRP off exchanges.
More skeptical perspectives predict a ceiling ranging from $8 to $10, suggesting that regulatory uncertainty and Bitcoin‘s dominance could limit XRP’s altcoin cycle development. Despite this, the XRP Ledger benefits from ongoing decentralized payment solutions and tokenization projects, which offer robust foundational support.
Key takeaways include:
- Short-term resistance at the 50-day EMA impacts price movement.
- Limited on-chain accumulation signals concerns over substantial buyer interest.
- Derivatives market dynamics suggest controlled risk from open interest declines.
- XRP’s support at 200-week EMA is essential for sustaining long-term upward trends.
Investors remain divided over XRP’s future, balancing between enthusiasm for technological advancements and apprehension about market conditions. As the landscape continues to evolve, the interaction between regulatory developments and market dynamics will play a crucial role in shaping XRP’s trajectory.
