Ripple continues its rise despite a slight corrective phase. Let’s see the future outlook for the XRP price.
Status of Ripple (XRP)
After breaking its range from above, the price of XRP appreciated, reaching $0.73. Following this rise, XRP entered a consolidation phase before reacting to a false rumor regarding the launch of an XRP ETF powered by BlackRock. This infox caused a brief fluctuation in the price of the cryptocurrency, characterized by a small pump and dump.
Fortunately for XRP, this did not allow its medium-term upward trend to be called into question. It is trading this morning around $0.64. It is above its 50 and 200 day moving averages, oriented and now crossed upwards. This supports the idea that XRP is in an uptrend. On the oscillator side, they confirm that, although the momentum of XRP remains bullish, it is starting to lose strength. This suggests that a potential bullish runout is occurring.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on Ripple derivatives (XRP)
Since mid-October, XRP has increased in the same direction as its open interest. Indeed, the latter more than doubled with a notable injection of around $280 million in additional positions (Long/Short). This development suggests a significant appeal for XRP, mainly from buyers. As for liquidations, we observe that they were not particularly significant, with the exception of those that occurred during the false news. In fact, this event caused liquidations worth around $10 million. The latter thus demonstrate a period of instability in the cryptocurrency.
According to the XRP Liquidation Heat Map, the most relevant liquidation zones are below its current price, particularly around $0.51. If the market approaches this level, it could trigger a large number of orders, potentially increasing the volatility of the cryptocurrency. Thus, this perspective makes this area particularly attractive for investors.
Hypotheses for the price of Ripple (XRP)
If the price of XRP remains above $0.67, we could anticipate a bullish continuation up to $0.86. The next resistance to take into account, if the bullish movement continues, would be the $0.94 threshold. At this stage, this would represent an increase close to + 45%.
If the Cosmos price fails to hold above $0.56, we could envisage a return to $0.54 or even $0.51. The next support to take into account, if the bearish movement continues, would be around $0.47. At this stage, this would represent a drop close to – 27%.
Conclusion
XRP continues its medium-long term upward trend as best it can. The latest bad news around cryptocurrency has not called it into question. However, it will be necessary to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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