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Why XRP Dumped and Why XRP Is Still Very Bullish for Big Rally
The price of Ripple’s XRP has been volatile recently, prompting concerns about its future trajectory. In a recent video update, crypto analyst Steph Is Crypto delved into the factors behind this downturn and offered insights on why XRP remains poised for another significant rally.
To begin with, Steph emphasized that XRP is still positioned in a higher high and higher low structure on the weekly timeframe, indicating an overall upward trend despite current fluctuations. Furthermore, he believes that the digital asset is currently forming a bullish continuation pattern, hinting at the possibility of another substantial price increase.
The analyst projected short-term targets for XRP, pointing out potential resistance around $4 to $5, with $4.50 to $5 being the most crucial range to monitor closely. This could represent an approximately 70% growth from present levels.
While XRP’s recent performance has raised some red flags, Steph pinpointed a support level that he deemed vital for XRP. He drew attention to a trendline extending from January highs to current lows, which intersects with the 0.5 Fibonacci retracement level near $2.64. The analyst underscored the importance of maintaining this support zone as any break below it could imply a bearish continuation.
In addition to chart analysis, Steph also examined broader market trends and investor behavior patterns that may impact XRP’s trajectory. He noted that inflation in the United States is still below the Federal Reserve’s two percent target, which might lead to potential interest rate cuts over the coming months. This development could generate short-term bullish momentum, although he did caution that any announcements of rate cuts might cause temporary “sell the news” reactions.
Another critical indicator mentioned by Steph is an on-chain metric indicating a decrease in the share of XRP holders now in profit from 98.2% to around 93%. He views this decline as positive due to reduced pressure from excessive profit-taking. Concurrently, short-term XRP wallets that have been active within the past three months increased significantly, jumping from approximately 5.8% to nearly 9.3% in just two weeks. This development suggests retail investors are acquiring XRP at its present levels, particularly around $3.
A concern raised by Steph comes from Google Trends data, which displays declining search interest for XRP compared to December highs. Despite the asset’s price growth since then, overall retail attention has decreased, which he perceived as a bearish factor. Although short-term price action might still support movement toward $4 and $5, this reduced public awareness should be taken into consideration.
Lastly, Steph analyzed the broader altcoin market, referencing the Altcoin Season Index, currently standing at 53, providing space for further expansion before correction. He believes that this supports XRP’s potential for additional growth in the short term.
Source: timestabloid.com
