XRP Price Continues to Record a Steady Downtrend

input:target: Can XRP price rally by 600% to $15?

Relative strength in the crypto market continues to favor Bitcoin over altcoins. As BTC price attempts to break out of the current trading range, several other tokens are recording substantial losses.

One such token is XRP, which has fallen by more than 4% in the last 24 hours. Despite this drop, one analyst believes that if one support level holds, then XRP price could soon rally by 600% to $15.

XRP Price Could Rally 600% to $15

Popular analyst Crypto Elites observed that Ripple had formed a rounding bottom pattern, which often signals that the trend is about to shift to bullish.

After reaching a low of $0.3, XRP price began a slow recovery, which saw it retest the neckline of the rounding bottom at $2. If this level holds, then the token is bound to make a massive 607% rally to $15. At this point, XRP will have attained a market cap of nearly $1 trillion, which will see it rival Bitcoin and Ethereum in market dominance.

Chart: TradingView

At the moment, this scenario seems unlikely, especially with Bitcoin struggling to break out of the current trading range. However, if the narrative shifts back to altcoins, then we can expect to see more traders enter the market.

This move could be sparked by another major crypto price rally, or it could begin with a strong bounce off of the current support level at $2.

Signals Point to Bullish Outlook For XRP

Besides the analyst's bold prediction, other signals have emerged suggesting that despite the recent downtrend, Ripple still has a bullish outlook.

Crypto influencer John Squire noted that recently, one whale moved 8M XRP to an external wallet, hinting at a lack of intent to sell.

Moreover, digital assets manager Grayscale has revealed that XRP price has the highest year-to-deep in the triple-digit percentages. This year-to-date returns among the top ten largest cryptos.

This could bolster investor confidence in Ripple being a high-potential crypto to buy.

Bearish Case For XRP Price

Despite the bullish forecast for XRP by analysts, several factors suggest that the price is not out of the woods yet.

One of these factors is a bearish outlook in the derivatives market.

Data from Coinglass shows that XRP funding rates have turned negative, which is indicative of more short sellers entering the market. This influx in the number of traders betting against Ripple price as they expect it to drop.

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Besides the funding rates, the XRP 4-hour price chart shows that sellers are in control. The RSI has plummeted to 25, which signals that the token is heavily oversold. The ADX line is also rising, an indication that the current bearish trend is strong.

If the negative sentiment continues, XRP price can lose the critical support level at $2. This could spark a dip towards the $1.81 Fibonacci level.

To sum up, XRP price seems to be at a pivotal point where bulls and bears are fighting to have control. As long as Ripple can defend levels above $2, it has a chance to make a rebound. However. If this support fails to hold as selling intensifies, a crash to $1 is likely to happen.

Frequently Asked Questions (FAQs)

Can XRP price rally by 600% to $15?

One analyst predicts that if the critical support level at $2 holds, then we can expect to see a 600% rally to $15. However, if selling pressure mounts, then we can expect to see a break in price to $1.

Are whales buying XRP during the dip?

One crypto influencer observed that a whale moved 8M XRP to an external wallet, which could indicate that they are planning to hold for the long term.

Will XRP lose support at $2?

If the sellers manage to break below this level, then the next support level is at the $1.81 Fibonacci level.