XRP’s bullish rally to $1.50 halted – Will the altcoin drop to $1.20?

XRP’s bullish rally to $1.50 has hit a roadblock as weak hands exited after realizing profits.
Without an external catalyst, a drop to $1.20 support looms.

As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen my fair share of bull runs and bear markets. The recent rally of XRP to $1.50 has been nothing short of impressive, but it seems we’ve hit a roadblock now. Without an external catalyst, a drop to the critical support at $1.20 seems imminent.

On Ripple‘s [XRP] daily chart, it’s clear that profit-making has occurred. Over the past five days, we’ve seen a retreat following a peak at $1.50.

Currently, XRP is situated in a crucial intermediate position, encountering various hurdles prior to the formation of an optimistic trend that could potentially propel its value up to $2.

Recent blockchain data indicates increased large investor (whale) involvement, suggesting a potential formation of a base or floor in the market. However, XRP’s remarkable 200% rise over the past month has some experts concerned that the market might be approaching overheating.

As a researcher, I find it crucial to emphasize that a potential near-term adjustment seems imminent. Establishing the $1.20 level as robust support is vital in this context. If we fail to do so, rekindling fear of missing out (FOMO) and validating a more resilient base might become challenging.

The market is searching for a ‘savior’

It’s quite different from previous market cycles; while meme coins typically gain popularity during periods when Bitcoin is stable (consolidating), it’s currently the altcoins that are regaining strength. In fact, tokens based on memes are even appearing among the top 4 weekly losers.

In the midst of market turbulence, it appears that investors are favoring altcoins as a more secure investment option compared to high-stakes gambles. As a researcher, I find this trend intriguing and believe XRP bulls should capitalize on this by strategizing to maintain prices within the $1.40 range.

The significant part whales have played is evident in balancing out the surge of XRP influxes, which reached their highest point five days back. In other words, whale actions have been instrumental in maintaining equilibrium during this critical period.

This event saw one of the second largest deposits ever recorded, as more than 10 billion XRP tokens were transferred to Binance.

Source : CryptoQuant

Over a 1-day period, these deposits significantly influenced the price trend, leading to a series of four straight declines that dragged XRP back to around $1.20, effectively erasing about 82 cents of the prior day’s 18% gain.

In simpler terms, although some people with weaker positions have cashed out their earnings, those who bought cryptocurrencies around three years ago are still making a profit. They’re hoping for a strong market rise to happen soon.

Despite the fact that whale actions might be keeping HODLers engaged, the ongoing market turbulence increases the possibility that additional inexperienced investors may be forced to exit the market.

As Bitcoin’s bullish Thanksgiving rally gathers steam and speculation mounts that it could reach $99,000, the momentum generated on social media might propel altcoins like XRP past significant resistance points.

Keeping an eye on the XRP price at around $1.90 seems significant, given the substantial market liquidity and many key players choosing to exit their positions.

As a crypto investor, I find myself closely watching the current market trends, hoping for an internal shift rather than relying solely on an external catalyst to challenge the idea that $99K might represent the peak for Bitcoin.

Furthermore, considering that altcoins usually see the greatest gains when Bitcoin is on a bull run, a comparable response might spark a bullish surge in XRP as well.

Is XRP bullish enough to aim for $1.90?

Previously noted, maintaining the $1.20 level is vital for buyers to hold their ground. Should the price hit this point, there’s a strong possibility of widespread panic setting in, leading to additional selling as a substantial number of investors find themselves in the negative territory with their portfolios.

To mitigate losses, most positions will likely close.

But here’s the bright side: according to market trends, each dip presents a chance for individual investors to buy in at reduced prices. This could lead to a surge in the market if the trend is bullish.

From my perspective as a crypto investor, I’m closely watching both Bitcoin’s short-term fluctuations and the ongoing legal dispute between Ripple and the SEC. The immediate movements of Bitcoin are critical at the moment, but the eventual outcome of Ripple’s court case could significantly shape the long-term trajectory of our crypto market.

As a crypto investor, I’m feeling optimistic about the return of President-elect Trump, known for his pro-crypto stance. This renewed presence in office has sparked excitement within the Ripple community, leading me to speculate that XRP could potentially set a new all-time high by next year.

Realistic or not, here’s XRP market cap in BTC’s terms

In the short run, surpassing the $1.90 mark becomes crucial for rekindling fear of missing out (FOMO), and traders are hopeful it will reach $2. This largely hinges on Bitcoin’s behavior – whether it breaks through resistance or maintains its current position. As XRP often imitates Bitcoin, this could be a significant factor in XRP’s price movements as well.

From another perspective, if Bitcoin (BTC) experiences a pullback, it might lead to a beneficial correction to around $1.20. This could offer an excellent opportunity for numerous investors to enter the market. Subsequently, this could pave the way for a surge back up to $1.90, opening possibilities for even more growth.

2024-11-28 23:05

The market is searching for a ‘savior’

Is XRP bullish enough to aim for $1.90?

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