Will Ripple's XRP token maintain its $2 level or succumb to weakness?
Here's a rephrased version of the article:
XRP's price is hovering at $2.16 this Monday, with resistance at $2.39 on the horizon. The $2 threshold serves as a key support for the altcoin, but the overall mood is becoming sour. Traders are betting on a drop, and daily interest is plummeting. Is XRP about to stand tall or is a storm brewing for this cryptocurrency contender?
XRP Price Prediction
After breaking out of its consolidation phase on April 27, XRP has been attempting to rally towards the $2.39 resistance. However, it is currently trading 15% under this resistance, at $2.50—the 50% Fibonacci retracement level of the decline from the peak of $3.40 to a low of $1.61.
Two technical indicators on the daily price chart indicate a bullish stance for XRP. The Relative Strength Index (RSI) is above 54, above the neutral level, and the Moving Average Convergence Divergence (MACD) shows green histogram bars.
If XRP successfully breaks the resistance levels at $2.39 and $3, the uptrend could bring the target of $3 in May 2025 into play.
XRP Derivatives Data Analysis
Data from Coinglass indicates that XRP's volume has jumped by 24%, while open interest, the net volume of all open derivatives contracts, has dropped by less than 1%. The long/short ratio is currently below 1, indicating that derivatives traders are not yet bullish at the start of the week.
Derivatives analysis implies that those considering a position in XRP should approach with caution due to market uncertainty. The 24-hour liquidation stands at $5.24 million, with $4.89 million allocated to long positions and the remainder to short positions.
On-chain Analysis and Prediction
The number of whale transactions for XRP - valued at $100,000 and higher, and greater than $1 million - has decreased, according to on-chain intelligence platform Santiment. This reduction usually signals a loss of interest. However, the aggregate funding rates by XRP suggest that there is demand for the currency.
The funding rate turned positive on May 1 after closing April with two consecutive days of negative readings. Typically, a positive funding rate means that the price of derivatives contracts is higher than the spot market price of the asset, which is bullish for XRP in the medium to short term.
Strategy's Aggressive Bitcoin Purchases Gain Wall Street Approval
Several Wall Street analysts have given the green light to Forest Bai's aggressive Bitcoin purchasing strategy.
SEC vs. Ripple lawsuit- Tying loose ends
The deadline for the Ripple lawsuit appeal has been delayed from April 16 to June 15. Meanwhile, the SEC has delayed the approval of Franklin Templeton's XRP ETF until June 17, 2025. Renowned lawyer Bill Morgan suggests that this could be strategic timing, hinting at a potential ETF approval in 2025.
Expert Commentary
Forest Bai shares his views on whether XRP could become digital Gold or face regulatory challenges. The co-founder of Foresight Ventures believes that, due to its primary design as a payment protocol rather than a store of value like gold, and its centralized structure and regulatory challenges, XRP is unlikely to achieve gold-like status.
On the other hand, Dan Tapiero of 10T Holdings is bullish about the possibility of an XRP ETF launch. Tapiero suggests that despite early criticism of XRP, the team has been through a lot, possibly referencing the lawsuit and delisting from major exchanges.
Disclaimer: This article does not provide investment advice. The content and materials in this article are for educational purposes only.
- Despite XRP's current struggles with resistance at $2.39, some technical indicators like the RSI and MACD suggest a bullish stance for the cryptocurrency.
- The recent spike in XRP's volume by 24% could signal potential interest, but the low long/short ratio among derivatives traders indicates caution is advised due to market uncertainty.
- The decreasing number of whale transactions for XRP might signal a loss of interest, but the positive funding rate implies demand for the currency, suggesting a bullish outlook in the medium to short term.
- Forest Bai's aggressive Bitcoin purchasing strategy has gained approval from several Wall Street analysts, indicating a favorable outlook for Bitcoin investments.
- The SEC vs. Ripple lawsuit and the delay in Franklin Templeton's XRP ETF approval until June 2025 have left some legal uncertainties for XRP, raising questions about its potential as a digital form of Gold. However, Dan Tapiero remains bullish about the possibility of an XRP ETF launch.
