TL;DR
- XRP’s recent correction might soon be followed by a resurgence (at least according to one crucial metric).
- Analysts remain bullish, with some envisioning the rise to a new ATH.
Just a ‘Coffee Break?’
Ripple’s XRP followed the overall correction of the crypto market and nosedived to $2.78 a few hours ago. This represented the lowest point witnessed in the past two weeks. Shortly after, the bulls managed to reclaim some lost ground, and XRP currently trades at around $2.85, or a 5% decline on a daily scale.
The asset’s market cap plunged below $170 billion, which allowed Tether’s USDT to become once again the third-biggest cryptocurrency with a capitalization of over $172 billion.
While things might not look dreamy for the XRP Army, there is one important metric that hints a price rally might be knocking on the door. This is the Relative Strength Index (RSI), which earlier today dropped below 20 for the first time since June 22.
XRP RSI, Source: CryptoWaves
The indicator measures the speed and magnitude of recent price changes and is used by traders to spot reversal points. Ratios below 30 are typically seen as bullish territory as they suggest the asset is oversold and poised for a price increase. On the contrary, anything above 70 could be interpreted as a pullback signal.
XRP’s latest price drop did not scare some of its hard-core fans. The X user John Squire (who is among the most devoted advocates of the asset) described the correction as “a coffee break,” reminding that investors have survived much more severe crashes, including the one from 2018. It is interesting to note that he made the same comment towards the end of July this year after another setback.
The Key Level to Hold
Just a few hours ago, EGRAG CRYPTO (another X user who often touches upon XRP) suggested that the asset could preserve its bullish setup as long as it holds the short-term support at $2.77 and the long-term one at $2.65.
The analyst, going on X as Erica Hazel, revealed that the vast majority of traders dealing with the asset on Binance have opened long positions. She also said the exchange outflows over the past 48 hours have surpassed $66 million, indicating that investors have switched to self-custody methods, thus reducing the immediate selling pressure.
Hazel set $3.65 as the next key resistance level, claiming that if broken to the upside, the bulls may take “full control.”
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