Ripple’s XRP Faces Risk of Deeper Price Correction
The future of Ripple’s XRP price recovery rally depends heavily on the broader crypto market and investor behavior. Unfortunately, neither of these factors is currently favoring a price rise, which poses a potential risk for XRP holders.
Ripple’s investors, especially traders, have shown bearishness towards XRP, evident from the increased bearish bets in the futures market. This can be seen from the negative funding rates observed in cryptocurrency futures trading. These rates suggest that traders are betting on a price decline for XRP.
Additionally, the overall market sentiment is also bearish, as indicated by the Relative Strength Index (RSI). XRP is struggling to maintain the neutral line at 50 as support on the RSI, which further supports the possibility of a bearish outcome.
Based on current conditions, XRP’s price of $0.51 is poised for a potential breakout of a symmetrical triangle pattern that has been in effect since early April. This pattern typically signifies a period of consolidation before a breakout, but considering the prevailing market sentiment, a bearish move seems likely. If the support at $0.47 is broken, XRP could experience further losses, potentially reaching $0.42.
On the other hand, if XRP manages to flip $0.51 into a support floor, it would be a significant milestone. This would invalidate the bearish thesis and pave the way for a 27% rally, bringing the target price to $0.65 based on the triangle pattern.
In conclusion, Ripple’s XRP is facing a risk of a steeper price correction due to bearish sentiment from investors and the broader market. However, there is still a chance for a positive turnaround if certain support levels are maintained.