While XRP has been underperforming for several months with no substantial rally, several technical analysis indicators now hint at a bullish case for the embattled token.
XRP last saw a rally in September when the asset touched a high of $0.56. Since then, the XRP Ledger native token has been steadily plummeting while maintaining the $0.3 support level. This support level which has been tested five times in the last six months could likely be XRP’s bottom ahead of the apparent price surge.
Aside from the available technical cues, one of the key fundamental factors indicating that a bull season may be close for XRP is the positive developments in the Ripple-SEC lawsuit where XRP is the bone of contention.
As reported, John Deaton, the attorney representing over 75K XRP holders recently predicted that the case would end with a ruling from the Judge and not through a settlement.
What is DCA and Why Should You Consider the Approach for XRP?
DCA means Dollar Cost Averaging. It is an investment strategy or a process whereby an investor buys into a particular asset at different price intervals or support levels instead of going in all at once. This process helps an investor from getting extremely exposed and reduces the impact of volatility.
The DCA approach appears perfect for the XRP token in that uncertainty still hovers around the crypto asset. Currently, XRP is undervalued as not many investors are looking at the asset because of the ongoing court battle.
Hence, using the dollar cost averaging strategy might help an investor to find a strong footing as XRP is yet to switch to an uptrend.
With XRP entering into the buy zone according to analysis and the Market Value Realized Value (MVRV) position at -4.9%, the time to start dollar-cost averaging (DCA) into XRP could be now.
According to the MVRV, recovery is around the corner for XRP coupled with the profit/loss model by Santiment. The Relative Strength Index (RSI) also signifies that XRP could pump as it is below 30.
As earlier reported, whales are increasingly accumulating the sixth-largest cryptocurrency. Presently, XRP investors with 100K to 1M coins hold 11.59% of the token’s supply. Whereas whale addresses with 1 million to 10 million coins currently hold 7.12% of the supply. This spike in supply distribution indicates investors’ optimism regarding XRP.
At the time of writing, XRP is changing hands at $0.34. In contrast with the bullish indicators, the Stochastic oscillator shows a bearish case for XRP, demonstrating that sellers could push the asset’s price down to the potential bottom of $0.3. If this plays out and the $0.3 support holds, then the coin could rebound toward the following resistances $0.4385, $0.56, and $1.
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