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Cryptocurrencies: XRP ready to recover? May 16, 2024 Crypto Analysis
XRP has been in a sideways phase since July 2023. Let’s examine the future prospects of XRP together.
XRP price situation
After peaking at $0.93 from $0.47, XRP unfortunately experienced bearish pressure that erased this recent gain. Indeed, the cryptocurrency behind Ripple then returned to its support level, sparking renewed interest from buyers. Unfortunately, this did not allow it to surpass its latest peak. XRP limited itself to marking a new high at $0.73. Since then, it appears that XRP has been stuck in a range between this latest resistance and $0.47.
As of this writing, one XRP token is trading at $0.52. It is therefore placed at the bottom of its range and demonstrates strong interest from buyers. While the medium to long-term structure of XRP is still bullish, it is worth noting XRP Price it is now below the 50-day and 200-day moving averages. This naturally calls into question the continuation of this trend. As for the cryptocurrency’s momentum, the oscillators show a rebound, illustrating a marked impact from buyers.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today a trainer at Family businessa community of thousands of proprietary traders active since 2017. There you will find lives, educational content and financial markets support in a professional and friendly atmosphere.
Focus on Derivatives (XRPUSDT)
Since mid-April, open interest on XRP/USDT contracts has slightly followed the XRP price. This shows a slight buyer interest from speculators. However, as positive as this may seem, it reflects a period of indecision among investors. As for liquidations, they were insignificant, although most of them were done on the buyer side. As for funding rates, they fluctuate between positive and negative, indicating that the interest in these contracts is stable and well aligned with the underlying asset.
The three-month XRP/USDT liquidation heatmap shows that XRP is approaching a significant liquidation zone around $0.51. So far it appears that buying interest is on the cards, which is promising for the continuation of XRP’s move. Besides that, the closest liquidation zone to the current XRP price is below it, namely around $0.48. The next zones are above its price, starting from $0.63. The price approaching this level could trigger a massive wave of orders, thus increasing the risk of a period of increased volatility for PEPE. This area therefore represents a crucial point of interest for investors.
XRP price hypothesis
- As long as the XRP price remains above $0.47, a return to $0.62 can be expected. The next resistance to consider if the upward move continues would be $0.74. At this level it would represent an increase of over +40%.
- If XRP price fails to stay above $0.47, a yield around $0.40 could be considered. The next support to consider if the downside move continues would be $0.36. At this level it would represent a drop close to -30%.
Conclusion
Despite the renewed interest, XRP is in a phase of uncertainty, fluctuating below key levels without being able to confirm a sustained uptrend. Caution is advisable for the future of cryptocurrency. Therefore, it will be crucial to closely observe the price reaction at several key levels to confirm or invalidate current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in any scenario. Finally, let us remember that these analyzes are based exclusively on technical criteria and that cryptocurrency prices can evolve rapidly also depending on other more fundamental factors.
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Family Trading is a community of traders active since 2017 that offers Lives, educational content and contacts with the financial markets, not celuting cryptocurrencies with their friends Elie FT, passionate investor and trader on the cryptocurrency market.
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