Altcoins
XRP Price Prediction: Can the altcoin stay above $0.5?
- XRP could target the $0.54 resistance, but BTC’s fluctuations could complicate things.
- XRP’s press time value was a reduced buy despite massive outflows following Monday’s surge.
Ripple [XRP] led the market rally during the May 17 intraday trading session, posting gains of 3%. The recovery saw it reach $0.52.
XRP’s slight rebound followed Bitcoin [BTC] surprise jump from $64,000 to $67,000. But the biggest digital assets have erased gains from earlier in the week and could spell trouble for XRP.
Can XRP bulls defend $0.5?
Source: XRP/USDT, TradingView
Monday’s rise saw XRP defend the 78.6% Fib level ($0.48), a crucial low. XRP is stuck between the 61.8% and 78.6% Fib levels.
Thus, a decisive recovery could place the altcoin at the range high ($0.54). This represents a 10% potential for the bulls.
However, key technical chart indicators did not demonstrate market leverage to the bulls at press time.
The RSI (Relative Strength Index) was rejected at the midpoint, indicating that buying pressure increased but was not strong enough to push XRP higher.
Likewise, the CMF (Chaikin Money Flow) showed a slight increase but did not exceed the zero level. This has led to an improvement in capital flows, but these have not been substantial enough.
That said, XRP bulls must defend the 78.6% Fib level if the 10% potential is to be realized. Otherwise, short sellers could push it down to $0.45 or $0.41.
XRP Price Prediction: Will Outflows Delay Recovery?
Source: Coinglass (XRP spot feed)
CMF weakness was supported by massive outflows from XRP spot markets following Monday’s rally.
By Coinglass dataThe XRP spot market recorded an outflow of $24.99 million on June 17, demonstrating that some investors reduced their risks after the rally.
If it persists, bearish sentiment could weigh on a prolonged recovery.
However, Santiment, a smart crypto data platform, note that crowd sentiment on XRP has fallen to the 2024 low and could be a perfect buying opportunity.
“Patient traders who have been waiting for the crowd to abandon these large-cap altcoins may finally have their buying opportunity with FOMO at a 2024 low.”
The bullish stance, despite a weak price chart, was reiterated by another X (formerly Twitter) user and analyst, BCBacker.
Realistic or not, here it is Market capitalization of XRP in BTC terms
The analyst established that on longer-term charts, XRP flashed signals that were followed by an explosive rally in 2017 and 2021.
That said, BTC’s next move would be the main driver of XRP’s price action. Further weakening of the King Coin could complicate the altcoin’s recovery.