XRP Price Targets 20% Recovery — Key Holders Are the Catalyst
beincrypto.com 05 October 2024 18:55, UTC XRP price has seen a significant downturn in its price recently, dropping from $0.64 to $0.52, marking an 18% crash. However, the altcoin is now focusing on recovering this loss, with a key group of long-term investors potentially playing a vital role in driving this recovery.
XRP’s future movement will depend heavily on its ability to leverage these supportive forces and breakthrough crucial resistance levels.
XRP Investors Have a Huge Responsibility
The Market Value to Realized Value (MVRV) Long/Short Difference indicator currently offers insight into XRP’s investor sentiment. Typically, negative values suggest short-term investors are making profits, which is often a bearish signal.
However, XRP’s situation appears more favorable, as the indicator remains positive. This positivity suggests that long-term holders are in profit, reinforcing the asset’s stability.
These long-term investors, often considered the backbone of any cryptocurrency, are critical to XRP’s recovery. Their confidence and continued support will be essential in helping the altcoin regain lost ground. This stable base of holders suggests that XRP could have the backing needed to reverse its recent crash.
Read more: XRP ETF Explained: What It Is and How It Works
In addition to market sentiment, technical indicators are also showing signs of a potential increase. XRP’s Relative Strength Index (RSI) has shown a slight uptick over the last 48 hours, signaling that bearish momentum is weakening. This is a crucial development, as diminishing bearish pressure may pave the way for bullish momentum to build.
The RSI’s movement is particularly important for XRP because it indicates the market is gradually shifting from a bearish stance. If this momentum sustains, it could help trigger a price rebound, allowing XRP to begin recovering from its recent losses.
XRP Price Prediction: Resistances in Sight
XRP is currently trading at $0.53, following its 18% decline. The altcoin has bounced off the support at the 38.2% Fibonacci Retracement line, which coincides with the $0.52 level. This support level is crucial for maintaining upward momentum, and XRP could continue its increase from here.
The next key target for XRP is the $0.55 mark, which aligns with the 50% Fibonacci Retracement line. Breaching this level would open the door for a rise toward $0.59.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if XRP fails to break past $0.55, the bullish outlook will be invalidated. This could lead to a period of consolidation between $0.55 and $0.52, delaying any significant recovery in the near term.
