XRP price recently showed small signs of recovery in a market still dominated by bearish bias, briefly rising to a 24-hour high of $0.48 after falling to $0.46 yesterday.
At the time of writing, XRP price stood at $0.4738, marking a modest increase of 0.3% over the past day. This slight increase comes amid a general market downturn, showing XRP's resilience in a volatile environment.
Despite this small recovery, the broader scenario for XRP traders remains challenging, with significant liquidations continuing to impact the market.
According to our analysis via Coinglass the past 24 hours have seen 67,075 traders liquidated, for a total value of approximately $303.88 million.
Of these, XRP-related liquidations accounted for $1.25 million, mainly affecting those holding long positions.
Will XRP fall below 0.3 USD?
According to Crypto analyst Cheeky, the XRP/USDT trading pair shows a continued bearish outlook in the short to medium term.
Price movement within a downward parallel channel and its position below the key exponential moving averages (EMAs) 50 EMA at 51.6, 50 SMA at 51.1 and 200 EMA at 54.4 have reinforce this trend.
These indicators, along with a potential head and shoulders pattern, suggest further declines, which could reach lows between $0.28 and $0.33.
However, there is a silver lining as the overlapping candlestick patterns indicate impending volatility, which could break the bearish momentum.
While the short-term outlook looks bleak, the long-term outlook based on Elliott Wave theory and the stochastic RSI points to oversold conditions on the weekly and monthly charts.
This suggests that XRP could eventually recover significantly, with forecasts suggesting a potential high of $5.59 to $126 in the next bull cycle around 2025 or 2026.
Assess market sentiment
Further insights into XRP's market sentiment can be gleaned from the Network Value to Transactions (NVT) ratio, which was 154.6 at press time.
The NVT ratio, which compares the network value (market capitalization) to the daily USD volume transmitted through the blockchain, shows how high the current valuation is compared to the actual number of transactions.
A higher NVT ratio suggests the coin is overvalued relative to its actual trading volume, which could be a bearish signal for XRP.
Furthermore, data from Coinglass shows a slight increase in open interest in XRP, with a nearly 1% increase over the past day, bringing its valuation to $570.77 million.
Additionally, open interest volume has increased by 50%, now worth $1.11 billion. This increase coincides with reports from us, showing emerging bullish signs for XRP.
So there is a complex, multifaceted market outlook, combining bearish technical signals with the potential to build bullish sentiment in the background.