As market sentiment took its toll on XRP, it dipped 28% in the last 30 days or so. In the broader scope, these events reflected the impact of macroeconomic uncertainties and regulatory hesitations. Indeed, there seems to be a silver lining coming up through the gloom; the altcoin’s strongly oversold status and declining volatility suggest that a bounce back could not be far off.
Drawing conclusions from its technical indicators, it seems XRP has reached a pivot point that might propel it upwards. Despite joining the ranks of oversold commodities with a flat-lining relative strength index of around 30, this crypto asset has shown resilience. Based on these calculations, it may just be the perfect time for investors looking for discounted buys.
However, some are concerned as XRP’s 30-day moving average appears to be plummeting towards its 200-day average. Though the so-called ‘death cross’, which can often signal an imminent recovery, remains to be seen. Meanwhile, the notion that XRP could drop below the $0.50 mark cannot be completely disregarded, even though indicators point to the contrary. Some speculate that the coin might climb up slightly, potentially touching $0.52 in the upcoming weeks.
On a brighter note, the recent withdrawal of a significant sum, approximately 1 billion XRP, from Bitavo fosters a certain degree of optimism. That being said, other contrasting data revealing some amounts being transferred to exchanges cast a shadow of doubt on this positivity. One thing that remains constant is the unwavering fundamental position of XRP, carrying the same weight as it did back in July when Ripple secured a favorable ruling in its long-run battle with the SEC.
Hence, XRP fans can remain hopeful. The coin could reach $0.60 soon, eventually aiming for a recovery towards $0.80 by the year-end. However, it is important to keep in mind that given the current unpredictable state of the market, genuine solid gains might require some patience.
In the meantime, traders might consider diversifying into budding altcoins like Wall Street Memes (WSM) for a potential upside. This new ERC-20 cryptocurrency has made significant progress since June, raising over $26 million. One important factor to consider for new investors is the limited window of opportunity, with only 28 days left to secure their own WSM holdings before the price potentially soars.
While the bullish sentiment continues, investors should tread with caution. Crypto, being a high-risk asset class, comes along with its set of uncertainties, and the possibility of a total loss cannot be completely ruled out.
Source: Cryptonews
