Despite the recent decline in the price of XRP, a top cryptocurrency by market capitalization, there are indications that it holds significant potential for substantial gains. A recent technical analysis conducted by Amonyx suggests that XRP is likely to embark on a bullish run against both the US dollar and Bitcoin throughout the year 2024.
Key technical indicators and historical price actions support this optimistic outlook, signaling the possibility of notable price movements for XRP in the near future.
Amonyx’s technical forecast for XRP in 2024 focuses on the long-term price trends of the cryptocurrency, specifically analyzing its performance within an ascending channel that dates back to 2014. The analysis of the XRP/USD pair highlights the consistent behavior within this channel, with upper and lower trendlines serving as crucial boundaries.
Within this analysis, key Fibonacci retracement levels at 0.618, 0.786, 1.618, and 2.618 are identified as potential zones of resistance and support. These levels are deemed pivotal as they could trigger price reversals or consolidation.
The projection suggests a bullish surge towards the 2.618 Fibonacci level by 2024, indicating a significant increase in XRP’s value. This upper Fibonacci level serves as a ‘flip zone’ on the chart, indicating critical trading opportunities for investors.
A similar detailed examination of the XRP/BTC chart reveals a persistent descending trendline originating from 2014. This trendline has consistently acted as a resistance point for XRP, with the current price nearing another test of this boundary. Observations of bullish and bearish divergences on momentum indicators like the RSI hint at potential price movements.
The anticipated path on the XRP/BTC chart aligns with the bullish trajectory projected for the 1.618 Fibonacci level, reinforcing the positive sentiments derived from the XRP/USD analysis. This convergence of analysis across different currency pairs further supports the case for XRP’s growth prospects relative to both the dollar and Bitcoin.
Despite XRP’s current price trading at $0.49, which marks a 1% recovery following a recent 10% decline over two weeks, there are signs of an impending bullish trend. Insights from CryptoQuant indicate a rise in XRP’s Open Interest, particularly in response to regulatory developments involving the SEC. This surge in Open Interest reflects increased trader interest, aligning with expectations of a price uptick.
Additionally, Santiment’s analysis suggests that XRP’s current market conditions and a 30-day Market Value to Realized Value (MVRV) ratio of -3.5% position it in a mildly bullish category. This metric, compared with other cryptocurrencies like Bitcoin, Ethereum, Dogecoin, Toncoin, and Cardano, offers insights into the short-term potential for price movement in XRP.
