XRP has seen a 5% surge in 24 hours. This trend has pushed the altcoin’s price above the important support level of $0.52.
With investors stepping up, the cryptocurrency is now testing the resistance level of $0.56. Buyers are trying to turn this level into support while eyeing a bounce above $0.60.
Bulls consolidate control of XRP
Real demand from market participants is behind the 5% increase in the price of Ripple cryptocurrency. This is reflected in the rise in the Chaikin Money Flow (CMF), which measures the flow of money into and out of an asset. Currently, the CMF is in an uptrend at 0.20.
When an asset’s CMF rises, there is increased buying pressure in the market. This means that more investors are accumulating the asset than distributing it. As in the case of XRP, traders often look for an increasing inflow with an increase in the asset’s price. This is to confirm that the bullish trend is supported by strong investor interest and volume, lending more credibility to the rally.
XRP CMF. Fonte: TradingView
Furthermore, its positive Balance of Power (BoP) indicates the bullish bias that the token currently enjoys. This indicator, which measures the strength of buyers versus sellers in the market, is at 0.36. In this sense, the positive BoP indicates that buyers are in control and trying to sustain the price rally.
XRP BoP. Source: TradingView
Read more: How to Buy XRP and Everything You Need to Know
Price prediction for XRP
In fact, this optimistic outlook also exists in the XRP derivatives market, as reflected by its positive funding rate, which stands at 0.011%. The funding rate is a mechanism used in perpetual futures contracts to ensure that the price of the contract remains in line with the spot price of the underlying asset.
XRP Funding Rate. Source: Santiment
However, when this value is positive, it indicates that the price of the perpetual futures contract is trading at a premium to the spot price. This signals that there is more buying (long) interest than selling (short) interest in the market. This occurs when traders are optimistic about further growth in the asset's price.
Furthermore, if the current market momentum persists, XRP is poised to break above the $0.56 resistance soon. A successful breakout would position it to target the $0.60 level, the price it last reached in early October.
XRP Price Analysis. Source: TradingView
On the other hand, an unsuccessful attempt to break above the $0.56 level could see XRP price rally and retrace its recent gains, potentially pulling back towards the next support level at $0.52.
The article Analysis: XRP Finds Support, Aims for New Highs appeared first on BeInCrypto.
