Earlierthismonth,Ripple’s(XRP)pricedroppedby18%withinthreedays.SinceOctober3,however,thetokenhasstabilized,tradingbetween$0.52and$0.55.
WhilebigmarketplayersareaccumulatingXRP,whichcouldboostitsvalue,it’suncertainifthisisenoughtopreventthetokenfromdippingbelow$0.50.
RippleBullsShowSupportfortheAltcoin
AccordingtoSantiment,addresseswithholdingsbetween100millionand1billionXRPowned9.63billiontokensonOctober17.Thatamounthassinceincreasedto9.77billion,indicatinganaccumulationofaround140millionXRP,valuedatabout$77million.
Typically,whenlargeinvestorsaccumulatetokens,itsignalsanexpectationofapriceincrease.Conversely,areductioninholdingsoftensuggestsanimpendingpricedrop.Giventherecentaccumulation,XRPcouldbepoisedtoriseabove$0.55.
Readmore:XRPETFExplained:WhatItIsandHowItWorks
XRPInvestorBalance.Source:Santiment
AnotherfactorsupportingthispredictionistheFundingRate,whichmeasuresthedifferencebetweenthemarkpriceofperpetualfuturesandtheindexprice,representingthespotpriceoftheunderlyingasset.
WhentheFundingRaterises,longsarepayingshorts,signalingthattradersaregenerallybullish.Adeclineintherateindicatesshortspayinglongs,reflectingbearishsentiment.
ForXRP,theFundingRateiscurrentlypositive.Ifthistrendcontinues,thealtcoin’spricecouldincrease,leadingtopotentialprofitsfortradersholdinglongpositions.
XRPFundingRate.Source:Santiment
XRPPricePrediction:BounceImminent
Onthedailychart,XRP’spriceisswingingbetween$0.52and$0.54.However,alookatthechartshowsthatthe$0.52levelisstrongsupportforthetokenbecausebullshavedefendedthepricefrombelowthatpointseveraltimesoverthelastfewweeks.
Consideringthisposition,itishighlyunlikelythataltcoinwilldropto$0.50orbelowit.Instead,theFibonacciindicator,whichmeasuressupportandresistance,revealsthatXRP’spricemightbounceoffthatsupport.
Readmore:HowtoBuyXRPandEverythingYouNeedToKnow
XRPPriceAnalysis.Source:TradingView
Withincreasingbuyingpressure,thecryptocurrency’svaluemighthit$0.60.However,ifXRPslipsbelow$0.52andbullsfailtodefendthetoken,adrawdownto$0.49couldbenext.
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