Ripple (XRP) price, while currently in decline, could soon be looking at recovery despite the changing market conditions.
The factors driving this rally will solely be investors as they make the decision to buy and sell.
Ripple Investors Could Buy the Dip
XRP price is at a two-month low at the moment, but a recovery is possible if only investors opt to push the price back up.
The Market Value to Realized Value (MVRV) ratio exhibits this potential. The 30-day MVRV ratio suggests that investors are sitting at a 6.80% loss, possibly prompting accumulation. Historically, XRP price tends to recover when the MVRV ratio is between -4.3% and -10.5%, as it often precedes rallies.
Secondly, the chances of selling XRP are also pretty low right now as the altcoin is far from being in a market top. The market top refers to the highest point reached by a market before a significant decline. It marks the peak of bullish activity and precedes a downward trend in asset prices.
Generally, a market top is confirmed when an asset’s total profit supply crosses the 95% mark. However, the total profit supply of XRP is 70%, far from noting a drawdown.
Read More: How To Buy XRP and Everything You Need To Know
XRP Price Prediction: Bouncing Back
XRP price, trading at $0.47 at the time of writing, will likely bounce back from the critical support of $0.47. The altcoin’s drawdown was the effect of failing the bullish ascending triangle that suggested the Ripple native token could shoot up to $0.61.
However, the broader market’s bearish cues pulled XRP down below $0.50. Still, the aforementioned conditions point to a potential recovery that could send the XRP price back up. A bounce from $0.47 can push the altcoin’s price to $0.51, breaching which will enable further recovery.
Read More: Ripple (XRP) Price Prediction 2024/2025/2030
On the other hand, if the support of $0.47 is lost, a drawdown to $0.42 is also possible. This would place the XRP price at a yearly low and invalidate the bullish thesis completely.
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Disclaimer
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