XRP, the native token of Ripple, is currently trading at the lowest price in the past week. This altcoin is currently trading at $0.53 and has fallen an additional 3% in the last 24 hours.
However, according to BeInCrypto's technical analysis of XRP, this decline is only temporary and it can soon rebound. The reasons are as follows.
The selling pressure on XRP is starting to weaken
Despite the price decline, XRP's Chaikin Money Flow (CMF) has been maintaining an upward trend for the past few days. This indicator measures the buying and selling pressure on an asset over a specific period. Currently at -0.10, it is attempting to cross over the zero line.
In the case of XRP, the Chaikin Money Flow (CMF) being negative but showing an upward trend, and the price declining, indicates that the asset is still in a state of net distribution and there is overall selling pressure. However, the intensity of this selling is decreasing, the bears are weakening, and bullish interest is slowly increasing.
Read more: Everything You Need to Know About Ripple vs. SEC
XRP's positive funding rate currently stands at 0.01%, reflecting that this altcoin is maintaining a bullish bias despite the value decline.
The funding rate is a periodic fee used to bring the price of perpetual futures contracts in line with the spot price of the underlying asset. If the funding rate remains positive even as the asset's price declines, it indicates that most traders are still expecting bullishness and betting on a price recovery.
XRP Price Prediction: $0.65 Resistance, Will It Break Through This Time?
XRP is currently trading at $0.53, just above the crucial support level of $0.52. If the bullish sentiment is reactivated, the demand for the altcoin could be reignited, leading to a rebound.
In such a scenario, XRP's price could attempt to break through the $0.65 resistance level. If successful, the token could further rise, targeting the 7-month high of $0.74.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if the bearish trend persists, the bullish forces may fail to defend the $0.52 support level, and XRP's price could drop to $0.38, invalidating the bullish prediction above.
