XRP price has struggled to maintain a consistent bullish trend, repeatedly failing to close above the $0.55 resistance level. This price barrier has held XRP in check for the past six weeks despite intermittent rallies.
If investor confidence strengthens alongside favorable market conditions, XRP may finally break through.
XRP Sees a Sell Signal
At present, XRP’s Price DAA (Daily Active Addresses) Divergence is flashing a sell signal. This bearish indicator appears when network participation, or active addresses, begins to decline even as the price rises. Such a divergence often signals weakening demand, as fewer participants actively engage with the asset despite its price increase.
If XRP holders interpret this signal as a cue to sell, it could disrupt the recent upward trend. This potential selling pressure adds an element of caution for investors hoping for a breakout above $0.55, as any sustained sell-off could curb XRP’s upward push.
Read more: XRP ETF Explained: What It Is and How It Works
XRP’s macro momentum has been bolstered recently by its growing correlation with Bitcoin. As Bitcoin has set two new all-time highs (ATHs) over the past two days, XRP has followed with its own gains. This correlation is helping to drive XRP’s current price rise, as broader market interest in cryptocurrency increases when Bitcoin performs well.
The strengthening of the altcoin’s correlation with Bitcoin may further support XRP’s price in the near term. However, XRP’s reliance on BTC’s momentum means it remains vulnerable to any cooling in Bitcoin’s rally. If Bitcoin’s price growth slows, XRP may also struggle to sustain its recent gains, highlighting the importance of independent investor confidence in the altcoin’s future trajectory.
XRP Price Prediction: Breakout Awaits
In the last 24 hours, XRP has risen by 10%, hovering just below the 50% Fibonacci Retracement line at $0.55. This level acts as a pivotal resistance point for XRP, and breaching it would mark a monthly high. Successfully crossing this line would signal renewed strength, attracting additional buyers.
However, mixed signals from market sentiment and technical indicators suggest that the breakout may take work. If XRP fails to break through $0.55, it could remain rangebound, stabilizing above $0.52. This pattern would indicate continued consolidation as investors await clearer market signals.
Read more: How To Buy XRP and Everything You Need To Know
If XRP manages to overcome the $0.55 barrier, it has the potential to rally further. Breaching $0.59, which aligns with the 61.8% Fibonacci line, would confirm a strong bullish move, negating any bearish-neutral outlook. This upward movement could set the stage for further gains, instilling greater confidence in XRP’s momentum.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
