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XRP Price Outlook: Will September Bring a 25% Correction or Fresh Upside?
The cryptocurrency market is in for a treat as the price outlook of Ripple’s flagship asset, XRP, takes center stage. As we begin this new month of September, one question has taken precedence over all others: will the token be setting its sights on yet another impressive upswing or does it have other plans in store? The answer lies hidden within the realms of technical analysis and market sentiment.
Recent events have sparked a mix of emotions among XRP enthusiasts, with some feeling optimistic about future prospects while others are bracing themselves for potential losses. The recent open interest spike above $3.5 billion is seen as a clear indication that traders remain optimistic about the token’s prospects. However, this enthusiasm seems to be met with skepticism from institutional investors who have yet to demonstrate significant support.
In the context of technical analysis, chart indicators are painting a less-than-clear picture. The MACD is poised for a bearish crossover on the weekly chart, which would historically signify a correction that could potentially result in losses exceeding 25%. This level of correction would align with key Fibonacci retracement levels and the 50-week EMA near $2.17.
Conversely, if XRP can manage to break above the $3 mark and hold it, we may be setting our sights on a fresh upside movement that could propel the token towards the next target around $3.36.
In the words of trader Tyler McKnight, “The recent drop in open interest does not necessarily signify weakness; rather, it’s just a natural reset after the significant rally we saw earlier.” This sentiment is echoed by many other market participants who see this correction as a potential buying opportunity.
As September unfolds, it will be interesting to track the direction of the token. If XRP can manage to hold onto its current price levels, there is room for an even more substantial upswing.
Source: coinpedia.org
