Crypto: XRP ready to rebound? Crypto analysis for May 16, 2024

XRP has been in a lateralization phase since July 2023. Let’s take a look at the future prospects for XRP.

XRP price situation

After peaking at $0.93 from $0.47, XRP unfortunately came under bearish pressure sucking up all of this latest upside. Indeed, the cryptocurrency behind Ripple has therefore joined its support where it has once again aroused buying interest. Unfortunately, this did not allow the crossing of its last peak. XRP was limited to marking a new high point at $0.73. Since then, it seems that XRP is stuck in a range between this last resistance and $0.47.

At the time of writing this article, an XRP token is listed at $0.52. It is thus located in the lower part of its range and demonstrates pronounced buying interest. Although the medium to long term structure of XRP is still bullish, it is worth noting that the XRP price is now below its 50 and 200 day moving averages. This naturally sows doubt as to whether this trend will continue. In terms of cryptocurrency dynamics, the oscillators show a rebound in the latter, illustrating a marked impact on the part of buyers.

PEPEUSDT Chart (1D)
PEPEUSDT Chart (1D)

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (XRPUSDT)

Since mid-April, open interest on XRP/USDT contracts has very slightly followed the price of XRP. This demonstrates a slight buying interest from speculators. However, as positive as this may seem, this restraint reflects a period of indecision among investors. Concerning liquidations, they were not very significant, although we can note that they are mainly buyers. On the funding rate side, they oscillate between positive and negative, indicating that interest in these contracts is stable and well aligned with their underlying.

Open Interest / Liquidations & Funding rate XRP/USDT

The three-month XRP/USDT liquidation heatmap shows that XRP is attacking a significant liquidation zone, located around $0.51. So far, it appears to be buying interest, which is promising for XRP’s continued movement. Besides the latter, the liquidation zone closest to the current price of XRP is below it, precisely around $0.48. The next areas are above its price, starting with $0.63. The price approaching this level could result in a massive triggering of orders, thereby increasing the risk of a period of heightened volatility for PEPE. This area therefore represents a crucial point of interest for investors.

XRP/USDT Liquidation Heatmap (3 months)

Assumptions for the price of XRP

  • As long as the price of XRP remains above $0.47, we can anticipate a return to $0.62. The next resistance to take into account, if the bullish movement continues, would be $0.74. At this stage, this would represent an increase of more than +40%.
  • If the price of XRP fails to stay above $0.47, we could envisage a return to around $0.40. The next support to take into account, if the bearish movement continues, would be that of $0.36. At this stage, this would represent a drop close to -30%.

Conclusion

Despite renewed interest, XRP finds itself in a phase of uncertainty, oscillating below key levels without being able to confirm a sustained uptrend. Caution remains in order for the future of cryptocurrency. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.

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Family Trading is a Community of own-account traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.

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