XRP price continues to record a steady downtrend after falling by more than 4% in the last 24 hours. Despite this decline, Ripple continues to defend the critical support level at $2. Analysts forecast that as long as this support holds, XRP price could soon rally by 600% to $15.
Analyst Forecasts 600% XRP Price Rally to $15
Popular analyst Crypto Elites believes that XRP price could be on the verge of a 600% rally to $15. The analyst observed that Ripple had formed a rounding bottom pattern, which often signals that the trend is about to shift to bullish.
By defending the support level at $2, XRP price is also retesting the neckline of the rounding bottom. If this level holds, the token is bound to make a massive 600% rally to $15. At this point, Ripple will have attained a market cap of nearly $1 trillion, which will see XRP rival Ethereum and Bitcoin in market dominance.
XRP Price Chart
Besides the bullish XRP price prediction by analysts, other signals have emerged suggesting that despite the recent downtrend, Ripple still has a bullish outlook. Crypto influencer John Squire noted that recently, one whale moved 8M XRP to an external wallet, hinting at a lack of intent to sell.
Moreover, digital assets manager Grayscale has revealed that XRP price has the highest year-to-date returns among the top ten largest cryptos. This could bolster investor confidence in Ripple being a high-potential crypto to buy.
Bearish Case for Ripple Price
Despite the bullish forecast for XRP by analysts, several factors suggest that the price is not out of the woods yet. One of these factors is a bearish outlook in the derivatives market.
Data from Coinglass shows that XRP funding rates have turned negative, which is indicative of more short sellers entering the market. This influx in the number of traders betting against Ripple price as they expect it to drop.
XRP Funding Rate
Besides the funding rates, the XRP 4-hour price chart shows that sellers are in control. The RSI has plummeted to 25, which signals that the token is heavily oversold. The ADX line is also rising, an indication that the current bearish trend is strong.
If the negative sentiment continues, Ripple price can lose the critical support level at $2. This could spark a dip towards the $1.81 Fibonacci level.
XRP/USDT: 4-Hour Chart
To sum up, XRP price seems to be at a pivotal point where bulls and bears are fighting to have control. As long as Ripple can defend levels above $2, it has a chance to make a rebound, However. If this support fails to hold as selling intensifies, a crash to $1 is likely to happen.
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