XRP price prediction: Why the $0.7 rejection isn’t a setback for bulls

XRP failed to break out past the near 16-month range formation.
The $0.62-$0.65 is expected to act as a support zone.

As a seasoned analyst with over a decade of experience in the crypto market, I’ve seen my fair share of bull runs and bear markets. The recent surge in XRP has been quite intriguing, given its 49.2% rally from $0.496 to $0.74. While the breakout past the near 16-month range formation was indeed predicted, the rejection at $0.7 must be a bit of a sting for the bulls.

On Monday, November 4th, Ripple [XRP] was priced at $0.496. By Tuesday, November 12th, its value had surged by approximately 49.2%, reaching a high of $0.74. As previously suggested in an AMBCrypto report, a symmetrical triangle and an upcoming breakout have now occurred.

Currently, the cryptocurrency is testing the previous highs of around $0.62-$0.644 as a potential support level. So far, it has managed to hold this area, but its recent rejection at $0.7 may be disappointing for bullish investors. Will the bulls be able to drive prices upwards from here?

XRP price prediction: Indicators remain firmly bullish

The market’s trend for the following day appeared bullish as the low of $0.566, reached on October 17th, was surpassed on November 10th. Previously mentioned resistance levels around $0.65, established between July and September, are anticipated to function as an area of increased demand.

Even though the price had been rejected at $0.74, the Relative Strength Index (RSI) still stood at 70, indicating a strong bullish trend on the daily chart. Furthermore, the Chaikin Money Flow (CMF) was at +0.25, suggesting significant capital inflows into the market and robust demand trying to push through an attempted range breakout.

During the price surge over $0.65, the trading activity showed great promise. This suggests that the return to $0.62 could offer a good chance for purchases.

Short-term sentiment beginning to cool

In simpler terms, the price at which money is borrowed for trading reached its highest point near 0.04, suggesting strong optimism among investors who are betting on an increase in prices. At the same time, the total amount of contracts being traded skyrocketed to about $933 million. Meanwhile, the actual value of CVT, which had been struggling this month, started to rebound and move upward.

As a crypto investor, I’ve noticed a trend: the funding rate is decreasing, and so is the Open Interest (OI). This suggests that the bullish momentum may be waning, potentially indicating that XRP could consolidate before making its next significant move upward.

From January 2019 until late November 2020, the price of XRP hovered around the $0.3 level. However, it spiked briefly to $0.78 near the end of November, creating a broad trading range between approximately $0.23 and $0.62.

In the spring of 2021, when Bitcoin [BTC] started to stabilize around $60,000 in April, I witnessed an incredible surge that propelled its value by an astounding 217% beyond its previous highs.

Read Ripple’s [XRP] Price Prediction 2024-25

In the current phase, a comparable situation might arise. Back in July 2023, we witnessed an aggressive expansion that created a range, and since then, the bulls supporting XRP have yet to surpass this established boundary.

If the $0.7-$0.8 price range becomes a strong support level for XRP, it’s possible that XRP investors could see substantial returns. However, this process might take several months, and it would require Bitcoin to stabilize around its high points, which traditionally triggers a surge in altcoin prices, often referred to as “altcoin season.

2024-11-13 16:07

XRP price prediction: Indicators remain firmly bullish

Short-term sentiment beginning to cool

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