XRP Price Wobbles Despite Bullish Technicals and Legal Optimism
XRP, the native token of Ripple, is experiencing conflicting signals. While technical analysis suggests a potential upswing, recent whale movements and short-term price action paint a less clear picture.
XRP Price Recovery and Whale Activity
In the last 24 hours, XRP bounced back from a low of $0.488 to trade near $0.494, a modest gain of 0.8%. However, this uptick coincides with a significant transfer of XRP by whales, totaling 52.18 million coins valued at roughly $25.88 million, to centralized exchanges like Bitstamp and Bitso. This movement could indicate profit-taking by whales or a wait-and-see approach in anticipation of market fluctuations.
XRP/USD Technical Outlook: Bullish Signs Emerge
A double bottom pattern has emerged on the XRP/USD 4-hour chart, suggesting a potential bullish reversal. This pattern signifies buying pressure at support levels.
A breakout above the neckline resistance at $0.50 could further validate this bullish signal and lead to a price target of $0.56. The Relative Strength Index (RSI) sits at 50, indicating neutrality, but confirmation of the double bottom pattern could attract more buyers.
Long-Term Optimism: Amonyx Analysis
A technical analysis by Amonyx highlights XRP’s potential for significant gains throughout 2024, against both USD and Bitcoin. This prediction is based on XRP’s historical price movements and its position within an ascending channel established in 2014.
Key Fibonacci retracement levels are identified as potential support and resistance zones. A bullish surge towards the 2.618 Fibonacci level by year-end is projected.
Conflicting Market Signals
Despite these optimistic forecasts, XRP’s price remains subdued compared to its all-time high. The recent surge in short positions for XRP, as reported by Santiment, indicates bearish bets from some traders.
However, this short-selling activity could also create a potential “short squeeze” if the price rallies, pushing it further up. An increase in Open Interest (OI) for XRP futures also suggests growing investor interest in anticipation of price movements.
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