We have been witnessing a strange paradox lately. Major news, including the CLARITY Act failure and the US interest rate hike, should be considered bearish for the cryptocurrency market, yet the latter has entered green territory with remarkable strength.
Ripple’s cross-border token has been a major beneficiary, with its price up 8% over the past week. Naturally, this resurgence has drawn comments from industry participants, many of whom believe the asset has much more room to grow in the near future.
What Now?
As of this writing, XRP trades around $1.53 (per CoinGecko), representing a 53% rebound from the local bottom of sub-$1 registered in mid-August. Other catalysts for its pump, besides the broader revival of the crypto market, include solid institutional interest. As CryptoPotato reported, spot XRP ETFs posted 10 consecutive green weeks as cumulative net inflows into such products exceeded $1.72 billion.
Another positive factor is the whales’ activity. Last week, renowned analyst Ali Martinez revealed that large holders have accumulated approximately 1.54 billion tokens (worth over $2.2 billion) in about 96 hours.
Several hours ago, he claimed that this demand has positively impacted XRP’s valuation, arguing that on-chain data suggests there may still be room to run. In his view, the URPD shows relatively little resistance ahead until $1.60, where around 2.5 billion coins previously changed hands.
“That’s the next major level I’m watching for potential profit-taking before looking for the next setup,” he concluded.
X user Diana also chipped in, outlining $1.61 as the next big resistance zone. She maintained that if XRP breaks and holds above, then $1.70 comes into play.
“If bulls clear $1.70 too, the chart opens toward the much bigger $2.20-$2.40 resistance zone,” the analyst predicted.
Veteran trader Peter Brandt and JAVON MARKS made even more optimistic bets. The former issued a long-term forecast of $5.40, while the latter believes that XRP can explode to $15 and above.
Time to Lose Some Steam?
As mentioned above, the past several days have been highly positive for the cryptocurrency market, which entered an up-only mode. However, prices cannot climb forever, making an eventual correction inevitable.
XRP’s Relative Strength Index (RSI) suggests such a move might be just around the corner. The ratio has jumped above 70, signaling that the asset has entered overbought territory. Conversely, readings below 30 are typically interpreted as buying opportunities.
Source: CryptoPotato
