XRP’s price has been battling to break above the 78.6% Fibonacci Retracement line since early March, facing significant resistance. Despite repeated attempts, the altcoin has failed to maintain a breakout, keeping it in a bearish zone.
However, recent shifts in market sentiment have provided a glimmer of hope. This growing optimism among long-term holders could lead to a potential price rise, boosting profits for key investors and possibly ending XRP’s prolonged struggle.
XRP Is Noting Mixed Signals
The MVRV (Market Value to Realized Value) Long/Short Difference indicator for XRP currently stands at 3.1%, signaling that long-term holders (LTHs) are in profit. This is a bullish indicator, as LTHs generally hold onto their tokens longer, waiting for larger profits before selling. The absence of short-term holders dominating the market suggests that there is less risk of immediate selling pressure, providing XRP a better chance to rally.
On the other hand, negative values for short-term holders typically signal bearishness, as they tend to take quick profits, leading to price drops. With long-term holders in the profit zone, the possibility of them holding onto their XRP tokens increases. This shift could provide the necessary stability for XRP’s price to attempt another breakout.
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XRP’s macro momentum shows mixed signals. While the Realized Profit indicator has recently spiked, suggesting that investors are selling to secure gains, this could put downward pressure on XRP’s price. A surge in profit-taking often counters the bullish sentiment, especially if long-term holders decide to hold off on further selling.
Despite the spike in realized profits, the support from long-term holders could still help balance the market. However, the short-term bearish signals from profit-taking investors may limit the cryptocurrency’s upside potential, leading to traders’ cautious approach as XRP navigates this delicate situation.
XRP Price Prediction: Finding Strength
XRP is currently priced at $0.62, holding steady above the critical 61.8% Fibonacci retracement line at $0.59. The altcoin is attempting to breach the $0.65 barrier, which aligns with the 78.6% Fib line. This resistance level has kept XRP subdued for six months, and breaking through it is essential for further upward momentum.
The 61.8% Fib line is considered a key support level in bull markets, giving XRP a strong foundation to hold above it. However, the mixed signals from profit-taking and long-term holders may hinder the token’s ability to break through the $0.65 barrier.
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If broader market cues remain positive, XRP could break past the 78.6% barrier in Q4 2024. Failure to do so could lead to consolidation below $0.65, potentially invalidating the bullish outlook for the altcoin in the near term.
Disclaimer
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