XRP has been under pressure in recent months, mirroring the broader cryptocurrency market downtrend. However, Captain Faibik, a well-respected market analyst, believes the token has found a bottom and is primed for a significant mid-term rally.
XRP Touches Key Support Level
Faibik’s analysis highlights XRP’s resilience compared to other cryptocurrencies during the downturn. Despite dropping below $0.50 for three consecutive months, XRP only reached a low of $0.4620 on June 24th. This price point aligns with the Fibonacci 0 level, which often acts as strong support for assets.
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Analysts are closely watching whether this support level holds. If it does, a retest could serve as a springboard for a rebound. However, the success of this rebound hinges on a broader market recovery.
Recent signs suggest Bitcoin, the leading cryptocurrency, may be nearing a turnaround, which would positively impact the entire market and provide the necessary tailwinds for XRP’s resurgence.
Mid-Term Target of $2 Based on Technical Indicators
Faibik’s prediction of a $2 mid-term target for XRP is based on several technical factors. It’s worth noting that XRP last reached the $2 level during the 2018 record-breaking rally.
While it failed to surpass this mark in the 2021 bull run, many believe the ongoing SEC lawsuit against Ripple was a major contributing factor. With the lawsuit nearing its resolution, a decisive end could pave the way for a long-awaited XRP recovery.
Faibik’s technical analysis also identifies a symmetrical triangle pattern that XRP has been confined within on the weekly chart since 2020. A breakout above this triangle’s upper trendline could propel XRP towards the predicted $2 target.
Market Metrics Hint at Potential Reversal
Data from Santiment underscores XRP’s potential for a rebound. Daily and weekly price volatility have significantly decreased, reaching their lowest points since earlier this month.
Reduced volatility during a downtrend often signifies consolidation, where buyers and sellers establish a temporary pricing equilibrium. This could indicate that the downtrend is losing momentum and might be nearing an end, potentially paving the way for a price reversal.
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Short Squeeze Could Fuel Rebound
The current Long/Short Ratio for XRP, which sits at 0.9857 according to Coinglass data, suggests a slight predominance of shorts in the market. This positioning could fuel the strength of a potential rebound. If a recovery push materializes, it would likely force short sellers to close their positions, which would, in turn, drive the price upwards in a short squeeze scenario.
According to data from CoinMarketcap, XRP is trading at $0.4773, reflecting a minor increase of 0.48% on the day. While the token remains below the key $0.50 level, the confluence of technical indicators and positive market metrics suggests a potential turnaround could be on the horizon.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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