- XRP could aim at the overhead $0.54 resistance, but BTC’s fluctuations could complicate it.
- XRP’s press time value was a discounted buy despite the massive outflows after Monday’s upswing.
Ripple [XRP] led the market rally in the intraday trading session on the 17th of May, posting 3% gains. The upswing saw it hit $0.52.
XRP’s slight bounce followed Bitcoin’s [BTC] surprise jump from $64K to $67K. But the largest digital assets erased early-week gains and could spell trouble for XRP.
Can XRP bulls defend $0.5?
Source: XRP/USDT, TradingView
The Monday upswing saw XRP defend the 78.6% Fib level ($0.48), a crucial range low. XRP has been stuck between the 61.8% and 78.6% Fib levels.
So, a decisive reclaim could set the altcoin for the range-high ($0.54). That’s a potential 10% for bulls.
However, key technical chart indicators haven’t demonstrated market leverage to bulls as of press time.
The RSI (Relative Strength Index) faced rejection at the mid-range, indicating buying pressure surged but wasn’t strong enough to push XRP higher.
Similarly, the CMF (Chaikin Money Flow) showed an uptick but hadn’t crossed above the zero level. It meant inflows improved but weren’t substantial enough.
That said, XRP bulls need to defend the 78.6% Fib level if the 10% potential is to be realized. Otherwise, short-sellers could drag it lower to $0.45 or $0.41
XRP price prediction: Will outflows delay recovery?
Source: Coinglass (XRP spot flows)
The weak CMF was supported by massive outflows from XRP spot markets after Monday’s upswing.
Per Coinglass data, the XRP spot market recorded a $24.99 million outflow on the 17th of June, demonstrating that some investors de-risked after the upswing.
If it persists, the bearish sentiment could weigh on an extended recovery.
However, Santiment, an intelligent crypto data platform, noted that crowd sentiment on XRP has dipped to 2024 lows and could be a perfect buying opportunity.
‘Patient traders who have been waiting for the crowd to give up on these large-cap altcoins may finally have their buy opportunity with FOMO at a 2024 low.’
The bullish position, despite a weak price chart, was reiterated by another X (formerly Twitter) user and analyst, BCBacker.
Realistic or not, here’s XRP’s market cap in BTC’s terms
The analyst established that, on higher timeframe charts, XRP flashed signals that were followed by an explosive rally in 2017 and 2021.
That said, BTC’s next move would be the key driver of XRP’s price movement. Further weakening of the king coin could complicate the altcoin’s recovery.