Ripple’s native token, XRP, is trading at its lowest value in the past week. At the time of writing, the altcoin is trading at $0.53 and has seen a further 3% price decline in the past 24 hours.
However, BeInCrypto’s assessment of XRP’s technical configuration suggests that this decline is temporary and the altcoin could bounce back soon. Here’s why:
Ripple selling pressure begins to weaken
Despite the price decline, XRP’s Chaikin Money Flow (CMF) has maintained an upward trend over the past few days. This indicator measures the buying and selling pressure of an asset over a specified period of time. As of this writing, it is hovering at -0.10 and is about to cross the zero line.
As in the case of XRP, if the Chaikin Money Flow (CMF) is negative but trending upward even though the price is falling, it indicates that the asset is still under net distribution and the overall This means that there is selling pressure. However, the decreasing strength of this selloff suggests that the bears are weakening and bullish interest is starting to grow.
Read more: Everything you need to know about Ripple and the SEC
XRP CMF. Source: TradingView
XRP’s positive funding rate, at 0.01% at the time of writing, reflects the bullish bias the altcoin enjoys despite its decline in value.
The funding rate is a periodic fee used to match the price of a perpetual futures contract with the spot price of the underlying asset. If an asset’s price falls but the funding rate remains positive, it indicates that most traders are still bullish and are betting on a price recovery despite the continued decline. .
XRP funding rate. Source: Santiment
XRP price prediction: 7-month high is just around the corner
XRP is currently trading at $0.53, hovering just above the key support level at $0.52. A resurgence of bullish sentiment could create new demand for altcoins and trigger a rebound.
If this happens, XRP price could try to break out of the $0.65 resistance. If successful, the token could rise further and aim for a seven-month high of $0.74.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
XRP price analysis. Source: TradingView
However, if the downtrend continues, the bulls may not be able to defend the $0.52 support and the XRP price could fall to $0.38, invalidating the above bullish prediction.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.
