After multiple failed attempts to break above the $0.85 resistance, some Ripple (XRP) investors have entered profit-taking mode. As XRP Price Loses Momentum, Can Bulls Protect $0.70 Support Level?
The continued rise in XRP prices seems to have lost momentum after hitting a barrier around $0.85. Indicators on the chain suggest that whale investors may soon succumb to bullish momentum.
XRP Price Rally is gradually losing Steam
According to Relative strength index data, XRP price growth will slow significantly in the coming days. As seen below, after racing to euphoric levels following the positive SEC decision, the XRP RSI has fallen below the critical 70 point, reaching 68.24 at the close of July 21.
of Relative strength index assesses the strength and momentum of a price trend. When the RSI sings below the 70 level from above, it suggests that the underlying asset is facing increasing selling pressure and may be ripe for a price correction.
Strategic investors may interpret this as a signal to take bearish positions in XRP in the coming days.
Whale investors are taking profits as momentum slows
Likewise, the growing bearish sentiment among a critical group of whale investors also validates the pessimistic XRP price projection.
As shown below, the group of XRP whales holding 10 million to 100 million XRP coins seem to be starting to take some profit. Between July 18 and July 22, they removed 320 million coins from their wallet balances.
With the price of XRP currently around $0.78, the latest withdrawals are worth $250 million. Notably, historical data shows that the trading patterns of this group of whales have been closely related to price trends in recent months.
Apparently, their current selling frenzy has played a critical role in the stagnation of the XRP price below $0.80 in recent days.
If retail investors also grow bullish, the price of XRP could gradually fall to $0.70
XRP Price Prediction: Bears May Target $0.70
As XRP price loses momentum, bulls are unlikely to scale the $0.85 resistance in the coming days.
As an indication, the MVRV report confirms that most holders who bought XRP in the last 30 days have seen their profits drop by around 20%. Historical data suggests that many may continue to sell until earnings fall to 10%, around $0.71
But if the bears break through that support level, XRP could fall further to $0.65 before the bulls regroup.
However, the bulls have a relatively good chance to force another rally if XRP scales the $0.85 resistance. However, profits would rise to 30% at that point and investors could start selling to withdraw some of it.
However, if this resistance level does not derail the rally, XRP could reach a new high in 2023 of $0.90.
Disclaimer
In accordance with Project Trust guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions may change without notice. Always do your research and consult a professional before making any financial decisions.
