- XRP seems ready to extend recovery and net an extra 10% gain.
- However, there was still overall market caution as sell pressure was still present.
Ripple [XRP] looks set to reverse some of its recent losses after bouncing from a crucial high-time frame chart demand level above $0.4.
Between the recent lows of $0.43 and press time value of $0.51, XRP was up over 18%. Further market improvement could boost bulls to tap an extra 10% after flipping a potential resistance into support.
XRP price prediction shows a potential 10% hike
Source: XRP/USDT, TradingView
The recent drop, as shown by the long candlestick wick, rebound from the weekly bullish order block, marked cyan. This reinforces the $0.4 as a crucial level for bulls since it has been holding XRP dumps since June 2023.
A signal for bulls was the reclaim of the breaker block ($0.47 – $0.48), white, which could make a restest of the immediate target of $0.54 likely. An upswing between the breaker block and the immediate bullish target would lead to a potential 10% recovery gain, especially if Bitcoin extends recovery to $60k.
The RSI (Relative Strength Index) and CMF (Chaikin Money Flow) showed upticks, with the latter bouncing above the average level. The CMF uptick meant that capital inflows surged into XRP markets.
The RSI bounce also meant that buying interest improved, but it remained below average to give bulls a strong conviction. That said, clearing the $0.54 hurdle could be a challenge without strong buying pressure.
Should the XRP weaken again, the price could drop again to the weekly bullish order (OB) above $0.4.
XRP price appreciation attracts sellers
Source: Santiment
The recent slight recovery also attracted a surge in sell pressure, as indicated by spikes in exchange inflows. It demonstrated that more XRP tokens were moved to exchanges for sell-off amidst the recovery.
Read Ripple [XRP] Price Prediction 2024-2025
Additionally, the uptick in network activity, as shown by an increase in daily active addresses, also eased after the light bounce. This meant that interest in the altcoin waned slightly.
Taking the readings collectively, the picture painted was one of overall market caution still present in XRP markets despite the recovery prospects.
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