Potential Recovery in XRP Price – Expected Increase of 12%
XRP faced a significant price correction in the previous week, threatening to breach the local resistance level of $0.625 before successfully surpassing it on September 29th. However, since then, XRP has experienced a 21% decline in its value.
Social media activity spiked following the application for a Bitwise XRP exchange-traded product (ETP), coinciding with a rise in whale transactions triggered by Bitcoin’s rejection at the $66.5k resistance level.
With market sentiment subdued, will the bulls manage to uphold the $0.5 support level? The likelihood of this outcome increases if Bitcoin also manages to stabilize its losses.
XRP Price Forecast Indicates Strong Resistance Against Bullish Attempts
The rapid 20% downturn transpired within just four days, reflecting a bearish trend that has persisted during the first week of each month since July. Past observations suggest that a bearish turn typically occurs during the second week of each month, following a bullish start.
XRP bulls are eager to navigate this situation, particularly attracting swing traders seeking a buying opportunity as both the OBV and price levels have reached crucial support positions. Meanwhile, Bitcoin’s downward momentum has slowed near the $60k mark.
The Awesome Oscillator registering at zero signifies the nullification of the upward momentum witnessed in the final week of September. Bulls are banking on considerable buying volume to fuel any potential price recovery.
Efforts to Break Out Result in a Flood of XRP Sell-offs
While the mean coin age displayed an upward trajectory in September, reflecting accumulation, recent days have witnessed a steep decline in this metric, indicating a high selling pressure. The 30-day MVRV also dropped to nearly -10%.
This indicates that short-term holders are currently facing an average loss of -10%, suggesting that most investors bought in around the $0.57-$0.58 range. Notably, the $0.585 level, representing the long-term mid-range level, is expected to pose a significant challenge on the way up.
Disclaimer: The views expressed do not constitute financial, investment, trading, or any other form of advice but are solely reflective of the author’s perspective.