Following yesterday’s market recovery, Ripple’s native token, XRP, has witnessed its value soar over 5%, reaching a key resistance level around the $0.5730 mark. Upon reaching this mark, XRP’s price action formed a double-top pattern characterized by two consecutive peaks at approximately the same price level.
This pattern often indicates a potential short-term trend reversal. In support of these bearish conditions, XRP’s active addresses have drastically plummeted. Data from Santiment reveals a sharp drop to 15.798K active addresses, marking a 43.24% decrease from the previous day’s high of 22.629K.
Moreover, the asset’s OI-weighted fund rate is also gaining foot in the short positions, suggesting that more traders are betting on XRP’s price to decrease in the near term. Despite these bearish signals, Ripple continues to challenge the $0.5730 resistance level, leaving the possibility of a breakout still on the table.
Will the $0.5730 Resistance Hold Steady?
Given the negative sentiments in Ripple’s chart, market analysts anticipate the $0.5730 barrier will hold steady in the short term as bearish pressure continues to weigh on the cryptocurrency. Such an event could push XRP to retest its immediate Low around past the 23.6% Fibonacci level at $0.5560.
A breach below this level could witness XRP’s value plummet to yesterday’s low at $0.5464 by the end of the week, where buyers would kick in to protect further downside movement. However, a shift in momentum could push the token’s price above the $0.5730 barrier, confirming an uptrend pattern and potentially leading to higher gains.
The success of this move could further uplift XRP’s price to its next hurdle around the $0.5850 level, where it may face resistance from sellers looking to capitalize on profit-taking opportunities. Nevertheless, a break above this level might propel XRP to higher levels, potentially challenging the $5939 high, last seen on August 24.
Ripple’s Price Action
As of press time, the XRP token traded at $0.5616, marking a 0.86% uptick in the last 24 hours. Following this slight price gain, the token’s intraday market cap has surged to $31,591,435,610, cementing its position as the 7th largest cryptocurrency by market capitalization.
The recent upward movement in XRP’s price may be linked to a recent X post by Ripple CEO Brad Garlinghouse, where he announced that the FinTech company is developing a new programmability feature for the XRPL.
With new programmability in the works for the XRP Ledger (something the XRP community has rightly been asking for) and the growing opportunity for Ripple’s enterprise products to serve crypto-native customers (such as @futureverse using Ripple Custody) – the foundations of crypto… https://t.co/ZLQXl0BcOD
— Brad Garlinghouse (@bgarlinghouse) September 3, 2024
In the post, Garlinghouse mentioned that this update will introduce smart contracts to the blockchain, enabling new functionalities such as NFTs, Automated Market Makers, and decentralized exchanges (DEXs) on the network.
Also Read: Shiba Inu Price Reversal; Will $SHIB Hit $0.000015 by Weekend?
Credit: Source link
