After a price drop of 13%, XRP is indicating signs of accumulating bullish momentum for a possible reversal.
- XRP plummeted by 13%, hitting a critical support level. Spikes in whale transactions and social volume indicate a likely bullish reversal.
Ripple [XRP] is wrestling with a critical support level after a 13% drop since the 25th of May. The rejection has left investors in a dilemma, wondering if XRP will plunge to its all time low or if a bullish surge is on the horizon after a likely price reversal.
As of this writing, XRP was consolidating in a bullish pennant, with an impending breakout point in nearing. The price is currently fluctuating around the support level at $0.45.
If the price closes below this level, a further price fall to the all time low may be witnessed. However, if XRP holds this support and builds enough bullish momentum, a price reversal towards the $0.53 resistance level is within reach.
The stochastic RSI (23.27) is in an oversold zone, indicating an impending bullish reversal.
Source: Tradingview
Whales show mixed signals
AMBCrypto analysis of santiment’s recent whale transaction data indicated a gradual increase. This suggests that major investors may have pumped the market up recently by taking long positions.
Source: Santiment
AMBCrypto further analyzed santiment’s social volume and NVT ratio data. Social volume data has gradually increased since the 9th of June. This suggests an increase in market interest.
The NVT ratio has also increased; hence, XRP’s market capitalization is greater than its transaction volume. If this trend continues, XRP will accumulate buying interest, which could spark a price reversal.
Source: Santiment
Realistic or not, here’s XRP’s market cap in BTC terms
Will XRP drop to its all time low, or is a bullish surge nearing?
With an increased whale transaction, stochastic RSI and NVT ratio indicating accumulating bullish momentum, a likely reversal is on the horizon.
However, if the support level is broken down, the XRP price may plummet to its all time low.
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