Ripple (XRP) price faced an 8% drop from October 21 to 25, suggesting the altcoin could fall further. However, since Saturday (26), XRP bulls have been vigorously defending the critical $0.50 support level and initiated a modest recovery.
Historically, the altcoin has staged brief recoveries from these levels, only to face renewed selling pressure shortly thereafter. This analysis examines whether XRP is set for a similar pullback or if this bounce marks the beginning of a sustainable recovery.
Ripple Sees Increase in Positive Sentiment
On-chain data from BeInCrypto reveals that Ripple’s Weighted Sentiment has recently moved out of negative territory, suggesting a more bullish market outlook among investors.
An increase in Weighted Sentiment generally indicates that traders and holders are more positive about the asset. Conversely, a negative reading indicates a pessimistic outlook for average market participants.
However, in this case, maintaining buying pressure will be crucial to confirm a continued uptrend as sentiment alone may not be enough to drive XRP price higher.
Read more: How to buy your first Ripple (XRP)?
Ripple Weighted Sentiment. Source: Santiment
Interestingly, the 4-hour chart reveals that XRP bulls are demonstrating determination to sustain the recent uptrend, as evidenced by the Bulls Bears Power (BBP) indicator.
The BBP measures the balance between buying and selling pressure. When the reading remains in positive territory, it generally indicates a continuation of upward momentum. However, a decline in the BBP could indicate a waning strength of buyers, signaling a possible pullback.
So far, the indicator is favoring the bullish trend as it overcomes the selling pressure. Therefore, if XRP bulls can keep the BBP indicator above neutral levels, the altcoin could break above the short-term resistance.
Ripple Bulls and Bears Power. Source: TradingView
XRP Price Prediction
On the daily chart, the XRP price fell below the 20-day Exponential Moving Average (EMA) on October 21, signaling a shift to bearish sentiment in the short term. The EMA is a technical indicator that assesses the trend of an asset.
Despite the drop, XRP bulls managed to reclaim support at $0.50, offering the altcoin a chance to break out higher resistance zones.
Considering the current buying pressure, the price is likely to rise above the 50 EMA (yellow). If this occurs, the altcoin could reach $0.55 and possibly break above $0.60 in the near term.
Read more: Ripple (XRP) Price Prediction 2021/2025
Ripple Daily Analysis. Source: TradingView
On the other hand, bears would have to ensure that XRP does not rise above $0.55 to invalidate this thesis. In this scenario, the price could fall to $0.49.
The article XRP Bulls Defend Support, Target Upside Breakout appeared first on BeInCrypto.
