XRP Price Eyes $0.60 But the Bottom Is Likely Not In

10 October 2022, 08:15 GMT+0000
Updated by Ali Martinez
12 October 2022, 17:06 GMT+0000
In Brief
  • The XRP price rallied 21.40% over the past 7 days.
  • Its daily RSI was in the overbought region, indicative of higher buying pressure from retail traders.
  • XRP is seeing dwindling development activity after making a peak in mid-September.
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XRP price charted a 15% uptick from the $0.45 level over the past week. Ripple has picked up the pace and is now oscillating near the $0.53 mark at press time. 

As a new week began, XRP price was among the top gainers on the daily as well as weekly charts, rallying 21.40% over the past 7 days and outperforming BTC price. Despite macro fears regarding Federal Reserve policies, optimism stemming from the SEC vs Ripple case provided much-needed relief to the XRP price. 

Renewed hopes for the XRP price

Sunday saw the XRP price rise by 3.8% to an intraday high of $0.540, as the sixth-largest cryptocurrency by market cap witnessed higher social volumes. At press time, Ripple XRP price was trading at $0.534, up 4.23% on the daily chart. 

Nonetheless, a strong positive sentiment was missing from the scene, indicative of the pullback seen in the weighted social sentiment due to XRP news. 

Ripple XRP price Sentiment
Source: Sanbase

From a technical point of view, XRP price daily RSI was in the overbought region, indicative of higher buying pressure from retail traders. However, mellowed-down trade volumes presented some skepticism among buyers as social euphoria still lacked. 

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Ripple XRP price chart
XRP/USDT | Source: Trading View 

Furthermore, the funding rate heading into the positive territory indicates a bullish bias in the futures market, showing higher hopes for the XRP price in the near future. 

Ripple XRP price funding rates
Source: Sanbase

Is the Ripple price bottom in?

While XRP’s trajectory seemed to be gaining momentum from a price perspective, the MVRV ratio (365d) made a local high, showing an increased supply relative to realized value (cost basis). Higher MVRV values indicate a larger degree of unrealized profit in the market and increase the probability that investors will sell coins to lock in profits.

Ripple xrp price chart
Source: Sanbase

While MVRV lows made on the short-term and long-term show that the $0.31 level has acted as a local bottom, it still cannot be concluded that XRP’s long-term bottom is in. 

Additionally, Ripple is seeing dwindling development activity after making a peak in mid-September.

In the near term, owing to the high social anticipation and its bullish price trajectory, a continuing uptrend is likely.

The next crucial resistance for the XRP price is found at the $0.60 mark and will be eyed by bulls in the short term. However, an invalidation and pullback phase at this level could still occur.

Disclaimer

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