The Weekly Chart of XRP Indicates an All-Time High, But Will the Current Bearish Sentiment Hold It Back?
The weekly chart of XRP hints at a potential all-time high, but the current bearish sentiment in the cryptocurrency market may have diverged from the recent decline seen in February. On closer inspection, its weekly chart shows a positive symmetrical trading pattern that began in December 2021 and has been consolidating within it ever since. This is of particular importance, as it indicates significant growth and potentially explosive price movements.
The pattern anticipates potential targets at $0.94, $1.31, and even retesting its all-time high according to chart research. Long-term XRP holders who have been waiting for a turnaround can benefit greatly from this positive development. On-chain data from Santiment suggests that there is strong support for this narrative. August 16 saw an increase in buying pressure, accompanied by reducing Exchange Supply and increasing exchange outflow. This indicates that investors are now building xRP, potentially in anticipation of upcoming price increases.
However, it’s not all sunshine and rainbows. The remaining on-chain metrics, including the MVRV ratio, whale transaction count, and Coinglass’ Long/Short Ratio, are bearish. This adds to the complexity of the current market conditions, as XRP could still encounter resistance in the short term, with potential bearish targets around $0.55. However, if the bulls can get their act together, the price could go up to $0.59 or more.
It’s worth noting that the market has been mostly bearish lately, with several leading cryptocurrency brands struggling to gain momentum. XRP, for instance, has experienced significant pressure, dropping more than 4 percent in the past week. Still, witnessing a long-term positive trend on its weekly chart is incredibly encouraging. XRP may be back to its previous high if it can successfully break this pattern and continue its upward trend, suggesting that investors should remain vigilant and cautious while monitoring market trends.
The occurrence of on-chain data indicating higher purchasing pressure and lower supply on exchanges indicates a potential explosive price movement. Nevertheless, it’s important to keep one another in mind before investing.
For more insights and information on the cryptocurrency market, check out this article on CoinSeeks.com: Cryptocurrency Market Analysis: XRP and Ethereum Predictions.
