The recent price drop has been accompanied by a bearish crossover on the two-day MACD, indicating that sellers currently dominate the market.
Ripple’s XRP price now has experienced a sharp 27% decline in the past week, falling to around $0.57 after a significant rally in July. This downturn has brought the cryptocurrency close to its key support level of $0.43.
If the bearish trend continues, XRP may test this support, which previously marked the start of its recent gains.
Technical Analysis and Market Sentiment
The recent price drop has been accompanied by a bearish crossover on the two-day MACD, indicating that sellers currently dominate the market. This technical signal suggests that the price could continue to fall unless buying interest increases.
The price action right now is bearish, but a change in market dynamics could potentially reverse the trend. Key support is at $0.43, which was the starting point for the recent rally. If the price continues to fall, this level will be crucial in determining whether the downturn persists or stabilizes.
Despite these bearish indicators, market sentiment is not entirely negative, as some analysts remain optimistic about XRP’s future.
Bullish Forecasts and Expert Predictions for XRP Price
Even with the current downturn, some analysts have a positive outlook for XRP. Mickle, a prominent crypto analyst on X (formerly Twitter), has forecasted that XRP could experience a dramatic increase, possibly reaching $570.
This prediction is based on anticipated favorable changes in US regulations, which could create a more supportive environment for cryptocurrencies. If these regulatory changes occur, XRP might break out of its current downtrend and achieve significant price gains.
Another popular analyst and XRP enthusiast Jack The Rippler has projected that XRP might reach $6 by August 2024 and could even hit $32 if Ripple’s legal battle with the SEC resolves in its favor. Jack’s focus is supported by historical patterns, particularly the 2017 fractal.
This analysis suggests that XRP could experience a similar rebound as seen in 2017 when the cryptocurrency underwent multiple declines before a significant price surge. Jack believes that XRP’s current market behavior mirrors this fractal, indicating the potential for a substantial rally if past patterns repeat.
🚨 #XRP Price Prediction Based on 2017 Fractal:
First Target – $6.10 in August
Correction to $2.38 in September
Final Upswing to $32 in November pic.twitter.com/kAmpcEOvCY
— JackTheRippler ©️ (@RippleXrpie) August 4, 2024
Market predictions from technical analytic platforms have reiterated the bullish predictions. CoinCodex forecasts a possible rise to around $0.57 by early September, while Changelly, another crypto analytic platform, anticipates a peak of $0.74 in August.
Photo: CoinCodex
Additionally, Santiment points out that low 7-day average returns for major cryptocurrencies like XRP often signal a potential for rebound, adding to the cautious optimism surrounding the token’s future.
Ripple’s Stablecoin Plan
Ripple has unveiled plans to launch a new stablecoin, Ripple USD (RLUSD), by the end of 2024. This stablecoin will be available on both the XRP Ledger and Ethereum. It aims to provide benefits such as deep liquidity for certain trading pairs, instant settlements, and programmable finance.
Even before its official launch, the SEC has already labeled RLUSD as an “unregistered crypto asset”, adding to Ripple’s ongoing legal challenges since 2020. This additional scrutiny could influence XRP’s market performance.
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