July 22, 2024

XRP’s Dominance Declines Amid Consolidation At $0.6! Here’s The Next Level For XRP Price

Amid high volatility in the market recently, Bitcoin and Ethereum experienced significant price movements, testing key resistance levels. However, XRP failed to follow this trend. Its price has been relatively stable for the past few weeks, consolidating around $0.6, leading to a decrease in its market dominance. This has sparked bearish discussions among analysts, with some predicting that XRP may undergo a considerable correction soon, possibly before a bull run, as resistance level intensifies.

January Is Bullish For XRP

XRP’s upward momentum has come to a halt recently. The bearish sentiment surrounding XRP appears to be increasing following Ripple’s release of 1 billion XRP from its escrow accounts today. This routine procedure, which takes place on the first of each month, involves three separate transactions to provide a controlled amount of liquidity to the market.

Despite XRP’s current consolidation around the $0.6 mark, investor confidence may be boosted by its historical performance in January. In the last four years, XRP has generally shown a positive trend in this month, with 2022 being the only exception. On average, XRP has shown a 35% increase in January.

If this trend continues this year, it’s possible that XRP could experience a significant recovery from recent lows, potentially rallying towards $0.81 by the end of the month. This analysis is further supported by a rise in on-chain activity, with the daily number of unique active addresses reaching a 5-month high at 72,680.

However, XRP’s market dominance has been declining since November as it now trades at 2.07%. Recently, there has been a noticeable struggle between bullish and bearish traders around the $0.6 level, as indicated by the long/short ratio currently standing at 0.9771. At present, approximately 51% of positions are anticipating a bearish move, while 49% are expecting an increase in XRP’s price.

What’s Next For XRP Price?

XRP price continued to struggle as its upward movement was halted at a key resistance of $0.65, showing the bulls couldn’t overcome this obstacle. However, the price neither dropped below $0.6 due to continuous buying demand near dips. As of writing, XRP price trades at $0.62, declining over 0.4% from yesterday’s rate.

XRP price now hovers between the moving averages on the 4-hour price chart, reflecting a lack of clear direction from either buyers or sellers. The nearly flat moving averages, along with the Relative Strength Index (RSI) trading around the midpoint, suggest that the XRP price might continue to move within the $0.57–$0.65 range for some time.

For the buyers to gain an advantage, they need to push the price above the $0.65 mark. Achieving this could lead to an increase in the price up to $0.68-$0.74, a zone that is expected to serve as a significant resistance. Conversely, if the price drops below $0.58, it would indicate a shift towards a short-term bearish trend. 

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