Ripple (XRP) Targets New Entries as Decline Continues: Analysts

Ripple (XRP) Targets New Entries as Decline Continues: Analysts

Ripple (XRP) made an eye-catching move earlier in the week, jumping above Binance Coin (BNB) in terms of market cap. Although BNB had retained its position, XRP cemented its stay as one of the top-performing assets out of the top 10.

At press time, XRP’s value was $0.67, thanks to a 12.18% increase in the last seven days. But at the same time, the press time value was a decrease from $0.73, which the token hit on November 6.

Bulls Need to Defend the $0.62 Support

According to Cryptonary, an analyst, the rejection at the $0.70 key resistance was one of the reasons XRP’s price fell. The analyst also mentioned that the Relative Strength Index (RSI) hitting 85.53 on November 6 was also instrumental to the price reversal.

XRP’s Momentum Meets a Roadblock: Is a Pullback on the Horizon?$XRP is throwing punches to break through a ceiling that’s as tough as they come. But the question in the air is whether XRP can deliver a knockout blow or if it’s about to take a tumble. Let’s figure out what’s…

— Cryptonary (@cryptonary) November 7, 2023

At press time, the RSI was down to 54.55. This decrease in the RSI reading is a testament to the profit-taking that has happened since the price rose to $0.73. Should the selling pressure continue, XRP may fall to $0.64.

Also, there was support at $0.62. For XRP to stay above $0.64, bulls have to defend $0.62. If not, XRP may risk dropping below $0.60. Furthermore, the Moving Average Convergence Divergence (MACD) was -0.0047.

Negative values of MACD indicate increasing downward momentum. Additionally, the 26-day EMA (orange) was above the 12-day EMA (blue). This is a confirmation that sellers were in control, and a further decrease below $0.67 is very likely.

XRP/USD 4-Hour Chart (Source: TradingView)

However, if XRP drops while support holds, traders should be looking at entries around $0.60 to $0.64. Meanwhile, another analyst, Michaël van de Poppe, also commented on XRP’s performance.

Another Recovery Could Be Valid

Van de Poppe, who is also the founder of MNTrading, noted that XRP may fall to $0.54. He added that, if that happens, it could be an entry point for traders looking to long the token. A look at the funding rate showed that traders seem confident about XRP’s revival.

The price of $XRP has been rallying past few weeks. It corrected from $0.93 back to $0.45 and came back up.

If $XRP does have a correction towards $0.54, another time to be a buyer.

— Michaël van de Poppe (@CryptoMichNL) November 7, 2023

By definition, the funding rate shows if market players are bearish or bullish on a specific cryptocurrency. If the funding rate increases, it means more positions are tilting toward the bullish side.

Conversely, a decreasing funding rate means traders are opening more short positions. At the time of writing, Coinalyze revealed that XRP’s funding rate had increased to 0.025.

XRP Funding Rate (Source: Coinalyze)

This reading indicates that there are more open long positions than short ones. Thus, there is a high chance that if XRP falls to $0.54 or $0.62, another uptrend may follow.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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