Despite its recent decline, XRP, one of the largest cryptocurrencies by market cap, now holds the potential for substantial gains. Particularly, according to a recent technical analysis by Amonyx, XRP is poised for a bullish run against both the United States dollar and Bitcoin throughout 2024.
This optimism is grounded in several key technical indicators and historical price actions, suggesting that XRP might soon experience notable price movements.
Technical Forecast: XRP Path In 2024
Amonyx’s technical assessment focuses on the long-term price trends of XRP, particularly its performance within an ascending channel established in 2014. The XRP/USD pair analysis points to consistent behavior within this channel, bounded by its upper and lower trendlines.
Key Fibonacci retracement levels identified at 0.618, 0.786, 1.618, and 2.618 are seen as potential resistance and support zones. The analysis highlights these zones as pivotal areas where price reversals or consolidation might occur.
Moreover, the analyst projects a bullish surge toward the 2.618 Fibonacci level by 2024, suggesting that investors might witness a significant uptick in XRP’s value.
This ‘flip zone’ the analyst wrote on the chart at the upper end of the trend provides a theoretical point for the asset to consolidate or reverse, indicating critical trading opportunities.
Turning to the XRP/BTC chart, a similar detailed examination reveals a persistent descending trendline starting from the same base year, 2014.
This trendline has been a resistance point for XRP, with the price nearing another test of this boundary. The analysis includes observations of bullish and bearish divergences on momentum indicators such as the Relative Strength Index (RSI), suggesting potential for upcoming price movements.
The projected path on the XRP/BTC chart envisions a bullish trajectory for the 1.618 Fibonacci level, corroborating the bullish sentiments from the XRP/USD analysis.
This convergence in analysis across different currency pairs further strengthens the case for XRP’s growth potential relative to both the dollar and Bitcoin.
Current Market Position and Outlook
Despite these optimistic projections, XRP’s price currently trades at $0.49, having recovered slightly by 1% after a nearly 10% decline over the past two weeks.
This recovery could be the onset of the anticipated bullish trend. Insights from CryptoQuant highlight an increase in XRP’s Open Interest (OI), particularly following developments related to regulatory news involving the SEC. This surge in OI indicates a growing interest from traders, aligning with the expected price increase.
Meanwhile, Santiment has recently suggested that XRP’s current market conditions and a 30-day Market Value to Realized Value (MVRV) ratio of -3.5% place it in a mildly bullish category.
The lower a cryptocurrency’s 30-day MVRV is, the higher the likelihood we see a short-term bounce:
Bitcoin: -4.0% (Mild Bullish)
Ethereum: -4.3% (Mild Bullish)
XRP: -3.5% (Mild Bullish)
Dogecoin: -16.7% (Very Bullish)
Toncoin: -0.6% (Neutral)
Cardano: -12.6% (Very Bullish) pic.twitter.com/zHGg4t3qo1— Santiment (@santimentfeed) June 19, 2024
Featured image created with DALL-E, Chart from TradingView