XRP price has failed to soar high despite the positive movement of the overall crypto market. It seems XRP has formed a resistance and can’t find enough momentum to break it. Many investors are now cautious, as the lack of price movement has left them uncertain about its future.
However, there still are many positive developments ongoing for the XRP community. Institutions haven’t lost faith in the XRP, as asset managers like CoinShares are filing with the SEC for ETF. If approvals come through, everyone will be able to trade XRP on NASDAQ or CBOE.
Crypto market analyst EGRAG CRYPTO said on X that XRP could drop significantly before recovering based on the past trends. He noted that in July 2023, XRP experienced a 230% surge. This surge was, however, followed by two major drops of 54.65% and 59.73%. This has created strong buying opportunities.
EGRAG highlights that if a similar pattern happens now, a 54.65% drop could bring XRP to $1.54, while a 59.73% decline could push it down to $1.37. These levels resemble previous lows of $0.54 and $0.37, just with a $1 difference.
However, there are some analysts who continue to remain optimistic despite concerns over a potential crash. As Dark Defender recently highlighted a key Fibonacci level of $2.4467, suggesting that XRP might be ready for a rebound.
He pointed out that the Relative Strength Index (RSI) shows oversold conditions, which could signal an upcoming price recovery. He also noted that $2.33 is a strong support level, meaning XRP could stabilize before moving higher.
XRP’s price dropped 2% in the past day, trading at $2.43, and its one-day trading volume surged 40% to $5.49 billion. The token hit a 24-hour high of $2.49 and a low of $2.32. Meanwhile, its Relative Strength Index (RSI) stands at 39, suggesting that XRP is nearing an oversold condition.
The crypto has fallen 29% from its January high of $3.39. Additionally, XRP Futures Open Interest has dropped from $7.86 billion in mid-January to $3.5 billion, reflecting a bearish market sentiment.
Despite this, experts remain optimistic due to positive market developments. The growing interest in an XRP ETF has strengthened bullish sentiment. Furthermore, a top lawyer suggested XRP could be added to the US Strategic Reserve once it reaches $5.
While XRP could drop to $1.4, market sentiment remains bullish. A potential correction could offer better entry opportunities for investors at lower prices.
Also Read: Investors May Soon Access XRP Through Regulated Receipts
