By Alicia Maher
Ripple’s price offers investors an opportunity to take advantage of a swift 20% upside move. Moreover, experienced market players can also take advantage of the 30% slump to follow the upswing. Let us dig deeper.
Ripple Couldn’t Reap Benefits
XRP price movements since December 23 formed three unique higher lows and lower highs. Connecting these swing points reveals a symmetrical triangle formation for the token. Meanwhile, the pattern converges within two trend lines, reducing volatility while squeezing Ripple prices. Therefore, breakouts from the mentioned coiling up will lead to a volatile move.
Meanwhile, XRP saw its price breaching the bottom trend line on April 11. That indicated an impending bearish trend. The technical setup predicts a potential 46% move towards $0.362, determined by measuring the initial swing peak to a low distance and adding the result to the breakout zone.
XRP has dropped 56% since the said breakdown, breaching the support at $0.693 and $0.508 to tag the barrier at $0.362. Buyers’ resurgence near the $0.362 mark saw the remittance token gaining 25% at its current price level of $0.417.
Since Bitcoin appears bullish with possible leg-ups to $35K, enthusiasts can expect upticks from XRP’s price. That would see the token targeting a $0.509 revisit. That move would mean a 22% upsurge, and bulls will likely keep this uptrend.
Nevertheless, this is a dead cat rebound rally, and traders should anticipate possible rejections near $0.509 plus a crash. A lucrative shorting opportunity would follow bulls’ exhaustion, welcoming sellers’ control. The resulting drop might see Ripple losing 30% to explore the $0.362 mark. Moreover, weakness at this mark might push the cross-border transactions token plummeting to $0.33.
What MVRV Says
The 365-day MVRV (Market Value to Realized Value) model supports the possible upside move for Ripple. This metric measures holders’ sentiment by assessing average loss/profits for traders that bought the tokens within the previous year.
Meanwhile, a negative reading shows unlikely sell-offs as holders remain underwater. On the other side, positive values show holders in profits, increasing decline chances. XRP has this index at -47% after retesting -52% (the 2015 support). That means lower sell-off probabilities, logical for the token’s upside action. That would match predictions from a technical standpoint.