As is common with many cryptocurrencies, Ripple’s (XRP) also experienced a price correction as the market entered a bearish phase. Yet there was positive news: an important indicator suggested that XRP could soon reach $3.
XRP remains hopeful
According to data from CoinMarketCap, the price of the coin has experienced a decline of more than 4% in the past seven days. In the last 24 hours the value fell again by more than 2%. At the time of writing, the XRP price is $0.5055, with a market capitalization of over $27.9 billion. Also, XRP’s fear and greed index is currently in the fear zone, with a score of 38%.
Although these are downside signals, the near future could show a different picture. Interestingly enough, Milkybull, a renowned crypto analyst, recently posted a tweet highlighting a special and “rare” indicator. He indicated the following:
“XRP’s conservative bullish target for this cycle is $2.4-$3. A rare indicator that never fails.”
This indicator has an impeccable reputation; it accurately predicted the price of
XRP heading for a bullish trend?
Next, looking at data from Santiment, it is clear to see that the cryptocurrency’s MVRV ratio has remained bearish, standing at -2% at the time of writing. There was also a sharp increase in the NVT ratio on May 11, indicating that the currency may still be overvalued.
Nevertheless, high buying pressure was visible, as evidenced by the increase in Exchange Outflow. At the same time, inventory on exchanges declined, indicating that investors were actively purchasing, which was also reflected in whale activity.
A deeper dive into the price data
Since some metrics still look bearish, it is important to grab the daily chart of XRP to see if a short-term uptrend is possible.
Looking at this chart, it can be seen that the coin’s Relative Strength Index (RSI) is showing a slight increase. The token’s Money Flow Index (MFI) has also moved slightly higher, indicating a possible trend reversal.
If the market trend changes and XRP gains bullish momentum, it could be possible to reach $3. However, before that milestone is reached, the coin still has a challenge to overcome.
Hyblock Capital’s data shows that liquidations of the coin will increase significantly around a price of $0.512, possibly leading to a further price drop. It is therefore essential that XRP breaks this specific resistance line before it can continue its advance towards $3.
Source: https://cryptobenelux.com/2024/05/12/xrp-zou-tot-3-kunnen-stijgen-als-dit-cruciaal-niveau-doorbroken-wordt/
