Captain Faibik, a prominent market analyst, asserts that XRP has reached its lowest point amidst the ongoing downtrend and anticipates an imminent mid-term rally to $2. This revelation came during his latest analysis of XRP’s price, coinciding with its decline below the $0.50 mark for the third consecutive month. Despite the market downturn, XRP has displayed greater resilience compared to other assets, yet it dipped to a low of $0.4620 on June 24.
Faibik suggests that XRP has established a bottom at this price level, implying that further declines are unlikely. This assessment is supported by the Fibonacci 0 level, which corresponds precisely with the $0.4620 floor. This Fibonacci region serves as a robust support zone for XRP, with bullish traders expected to defend it from any breaches.
If this support holds firm, a retesting of this level could potentially catalyze the long-awaited rebound, contingent upon broader market conditions favoring a resurgence. Recently, The Crypto Basic reported that Bitcoin (BTC) has reached its most oversold state since last August, signaling a possible recovery. Such a development would likely bolster XRP’s prospects, aligning with Faibik’s mid-term target of $2 once the rebound materializes.
Interestingly, XRP last reached the $2 mark in 2018 during its historic rally. Despite the bull run of 2021, where many assets achieved new all-time highs, XRP failed to breach $2, partly attributed to legal pressures stemming from the SEC’s lawsuit against Ripple. Faibik’s analysis unveils a symmetrical triangle formation on XRP’s weekly chart since 2020, with expectations of a potential recovery post-resolution of the SEC case, setting the stage for a breakout above the triangle’s upper trendline and a move towards the $2 target.
Market data from Santiment indicates that XRP’s price volatility has continued to decrease across various timeframes. Daily volatility has dropped to 0.004883, while weekly volatility stands at 0.016566, marking the lowest levels seen this month. Reduced volatility during a downtrend often signifies market consolidation, hinting at a potential end to the downtrend or preparations for a reversal.
As of the latest update, XRP is trading at $0.4690, a marginal decline of 0.17% this morning. Coinglass data reveals that the token’s Long/Short Ratio remains below 1, currently at 0.9309, indicating a predominance of short positions. This trend could provide further support for a rebound if a recovery surge manages to clear these short positions.
Please note that this article provides informational content and should not be construed as financial advice. The views expressed herein are personal opinions of the author and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic assumes no responsibility for financial losses incurred.