XRP is down 18% to $0.52, but is looking to recover with long-term investor support. While the rise in MVRV indicates long-term confidence, the RSI also shows waning bearish momentum. In order for XRP to rise to $0.59, it must first break above $0.55; otherwise, it could enter a consolidation period between $0.52 and $0.55.
There has been a significant drop in the XRP price in recent days. The price has shown an 18% collapse, from $0.64 to $0.52. However, the altcoin is focused on recouping its losses. Experts’ comments and price analysis on XRP suggest that long-term investors can play a critical role in driving this recovery.
Ripple’s future movement will depend on its ability to effectively leverage these supporting forces and break through critical resistance levels.
XRP Investors Bear Great Responsibility
The Market Value to Realized Value (MVRV) Long/Short Spread indicator provides important information about the sentiment of XRP investors. Usually, negative values indicate that short-term investors are making profits, which is perceived as a bear market signal. However, the situation with XRP is more positive, as the indicator remains positive. This reinforces the stability of the asset by showing that long-term holders are in profit.
Long-term investors are considered the backbone of any cryptocurrency and are critical to XRP’s recovery. The trust and continued support of these investors will help the altcoin regain lost ground. A stable holder base could provide support to reverse XRP’s recent decline.
Technical Indicators Show Potential Increase
In addition to market sentiment, technical indicators are also showing signs of a possible rally. XRP’s Relative Strength Index (RSI) has shown a slight increase over the past 48 hours, suggesting that bear market momentum is weakening. The waning bear pressure could pave the way for bullish momentum.
The movement of the RSI is of particular importance for XRP as it shows that the market is slowly starting to break out of its bearish stance. If this momentum can be sustained, it could help the price recover.
Currently, XRP is trading at $0.53 after an 18% drop. The altcoin is reacting to support at the 38.2% Fibonacci Retracement line, which overlaps with $0.52. This support level is critical to maintaining the upward momentum.
The next major target for XRP is $0.55, which is in line with the 50% Fibonacci Retracement line. If this level is broken, a rally to $0.59 is possible. However, if XRP fails to break $0.55, the bullish outlook will be invalidated and a squeeze period between $0.55 and $0.52 could occur, which could delay a significant recovery in the near future.
