- XRP dropped by 11%, but market sentiment around the token turned bullish.
- A few market indicators looked positive, but the rest suggested otherwise.
Ripple’s [XRP] price has remained under bearish control for the last week, which has not allowed investors to earn profits.
Though at first glance this looked concerning, there were chances of a recovery in the days to come.
A look at XRP’s state
AMBCrypto reported earlier that XRP’s performance was not on par with other altcoins like Ethereum [ETH], as it failed to register gains.
The trend continued to persist, as according to CoinMarketCap, XRP’s price dropped by more than 11% in the last seven days.
At the time of writing, the token was trading at $0.5105 with a market capitalization of over $27.7 billion.
However, we also mentioned that the token’s price was moving in a falling wedge, which is a bullish pattern. Furthermore, the latest data also supported the chances of an XRP recovery.
On the 3rd of February, X (formerly Twitter) account JackTheRippler noted that if XRP makes a recovery, its price can revisit an old resistance zone.
?BREAKING: A recovery above $0.532 could see #XRP revisit the $0.696 resistance level! ?? pic.twitter.com/6fpe9jAjJk
— JackTheRippler ©️ (@RippleXrpie) February 3, 2024
If XRP manages to break above $0.532, we could see the token revisit the $0.696 resistance level. To check the viability of that, AMBCrypto took a look at the token’s daily chart.
The token’s MACD displayed a bullish crossover.
Our analysis found that the token‘s price rebounded after touching the lower limit of the Bollinger bands, indicating a price uptick soon.
Another bullish indicator was the Chaikin Money Flow (CMF), which spiked substantially.
Nonetheless, the Relative Strength Index (RSI) remained bearish, as it was resting well below the neutral mark at press time.
Source: TradingView
It was interesting to note that despite the bearish price action, sentiment around XRP turned bullish. This was evident from the fact that its Weighted Sentiment went up during the last few days.
Regardless, its social volume remained low.
Source: Santiment
Let’s consider a utopian situation where XRP manages to begin a rally. AMBCrypto’s look at Hyblock Capital’s data revealed at what levels the token might see resistance if a bull rally ought to happen.
Read Ripple’s [XRP] Price Prediction 2024-25
Our analysis found that before touching $0.53, XRP must break above $0.523. This was the case earlier when the token’s price reached that level, and it witnessed a hike in liquidation.
Therefore, it will be interesting to see whether investors’ bullish expectations will translate into reality anytime soon.
Source: Hyblock Capital
