The hype around Ripple subsides: will the XRP price rally come to naught?
Date: 2023-07-24 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
After several unsuccessful attempts to break above the $0.85 resistance level, Ripple investors went into profit-taking mode.
Let's see if the bulls will be able to defend the $0.70 support level as the XRP price loses momentum.
Ripple's price rally is gradually fading away
According to the Relative Strength Index (RSI), XRP's price rally will slow down significantly in the coming days. As shown in the chart below, after soaring to euphoric highs on the back of winning the case against the SEC, the index fell below the critical level of 70, reaching 68.24 at the close of trading on July 21. This suggests that the underlying asset is under increasing selling pressure.
Strategic investors may interpret this situation as a signal to open bearish positions on XRP in the coming days.
Whales take profits amid slowing momentum
The growth of bearish sentiment among large investors confirms the pessimistic forecast for the price of XRP.
According to Santiment, between July 18 and July 22, addresses with a balance of 10 million to 100 million Ripple sold 320 million coins worth about $250 million.
The actions of this group of whales are closely correlated with the dynamics of the XRP price. If retail investors follow suit, the asset's quotes may gradually decline to $0.70.
XRP Price Prediction: Bears May Target $0.70
As XRP price loses momentum, the bulls are unlikely to be able to clear the $0.85 resistance in the coming days.
The MVRV ratio confirms that the majority of investors who bought Ripple in the last 30 days are currently seeing a reduction in profits of up to 20%. Historical data suggests that they will get rid of tokens until the profit drops to 10% - in this case, the price of XRP will drop to $0.71
However, the bulls have a relatively good chance of a new rally if Ripple still overcomes the $0.85 level. In this case, the asset could reach a new peak in 2023 at $0.90.
