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Crypto: XRP ready to bounce back? Crypto analysis of May 16, 2024

Thu 16 May 2024 ▪ 5 min of reading ▪ by Family Trading Partnership
Investissement

XRP has been in a sideways phase since July 2023. Let’s examine together the future prospects for XRP.

Logo XRP fond rouge et bleu avec de parts et d’autres un ours rouge et un taureau bleu enragés. En haut de chacun, on peut voir la barre de pouvoir de chacun.

XRP Price Situation

After marking a peak at $0.93 from $0.47, XRP unfortunately experienced bearish pressure that wiped out this recent gain. Indeed, the cryptocurrency behind Ripple then returned to its support level where it sparked renewed buyer interest. Unfortunately, this did not allow it to surpass its last peak. XRP was limited to marking a new high point at $0.73. Since then, it seems that XRP is stuck in a range between this last resistance and $0.47.

At the time of writing this article, one XRP token is trading at $0.52. It is thus located at the lower part of its range and demonstrates pronounced buyer interest. Although the medium and long-term structure of XRP is still bullish, it is worth noting that the XRP price is now below its 50 and 200-day moving averages. This naturally casts doubt on the continuation of this trend. On the side of the cryptocurrency’s momentum, the oscillators show a rebound, illustrating a marked impact from buyers.

Graphique du PEPEUSDT (1D)
PEPEUSDT Chart (1D)

The current technical analysis was done in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. There you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (XRPUSDT)

Since mid-April, the open interest on XRP/USDT contracts has very slightly followed the XRP price. This shows a slight buyer interest from speculators. However, as positive as this may seem, it reflects a period of indecision among investors. Regarding liquidations, they have been insignificant, although most of them are buy-side. As for funding rates, they fluctuate between positive and negative, indicating that interest in these contracts is stable and well-aligned with their underlying asset.

Open Interest / Liquidations & Funding rate XRP/USDT

The liquidation heatmap of XRP/USDT over three months shows that XRP is approaching a significant liquidation zone around $0.51. So far, it seems that interest is buying, which is promising for the continuation of XRP’s movement. Besides this, the closest liquidation zone to the current XRP price is below it, precisely around $0.48. The next zones are above its price, starting at $0.63. The price approaching this level could trigger a massive wave of orders, thereby increasing the risk of a period of heightened volatility for PEPE. This zone therefore represents a crucial point of interest for investors.

XRP/USDT Liquidation Heatmap (3 months)

Hypotheses for the XRP Price

  • As long as the XRP price stays above $0.47, a return to $0.62 can be anticipated. The next resistance to consider if the upward movement continues would be $0.74. At this level, it would represent an increase of over + 40%.
  • If the XRP price fails to stay above $0.47, a return around $0.40 could be considered. The next support to consider if the downward movement continues would be $0.36. At this level, it would represent a decline of close to -30%.

Conclusion

Despite renewed interest, XRP is in a phase of uncertainty, oscillating below key levels without managing to confirm a sustained bullish trend. Caution is advisable for the future of the cryptocurrency. Thus, it will be crucial to closely observe the price reaction at different key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also quickly evolve depending on other more fundamental factors.

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Family Trading

Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.

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