Ripple (XRP) price has seen a challenging trend recently, with consistent failures to close above the $0.60 level for four months. Despite these setbacks, XRP has managed to hold above a crucial support floor, giving investors hope.
A shift in institutional sentiment could help XRP regain its upward momentum, potentially changing the narrative around the cryptocurrency.
XRP Needs the Institutions
Institutional interest in XRP remained low throughout October, creating headwinds for the asset. Money flowing into XRP in the month of October reached only $2.3 million, significantly lagging behind Solana and Litecoin, which saw inflows of $17.9 million and $4.5 million, respectively.
This limited inflow reflects cautious investor sentiment, indicating that institutions are not as confident in XRP’s growth potential compared to other altcoins. For XRP to thrive in November, it will need stronger institutional support.
Victor Tan, founder and CEO of TrinityPad, shared a similar viewpoint regarding the future of XRP while talking to BeInCrypto.
“While recent ETF optimism and the “Uptober” hype have done little to drive significant movement, XRP could see modest growth if Ripple secures more institutional partnerships or regulatory clarity. Without major news, XRP may remain range-bound but could still gain 10-15% with favorable developments,” Tan told.
Higher inflows typically drive confidence and provide the stability necessary for price growth. Without increased institutional interest, XRP could continue struggling to break key resistance levels, limiting its potential for a strong rally in the near term.
Read more: XRP ETF Explained: What It Is and How It Works
XRP’s macro momentum shows it is currently undervalued, as indicated by the 90-day Market Value to Realized Value (MVRV) ratio. This metric suggests that XRP is trading below its fair value, which can sometimes prompt buying interest.
However, the altcoin has not entered the “opportunity zone,” which typically triggers accumulation; this zone is defined by a drop below -13%, signifying extreme losses for holders. When XRP falls into this territory, investors often shift from selling to buying, which can help stabilize the price.
Currently, XRP’s undervalued status is not enough to spur a reversal. The altcoin may remain in this undervalued territory unless there is a change in sentiment. Investors may need a significant event or market shift to rebuild confidence, which would likely be necessary for a more pronounced recovery in XRP’s price.
XRP Price Prediction: Long Wait Ahead
XRP’s price has faced challenges around the 38.2% Fibonacci Retracement line at $0.52, which has served as a support floor in recent weeks. Despite its stabilizing role, XRP recently dipped below this level, indicating weakened support. This drop reflects a cautious stance among investors, who are wary of further losses.
Unless broader market conditions become overwhelmingly bullish, XRP’s recovery may remain slow. A gradual price increase could lead to consolidation below $0.55 and above $0.52, trapping XRP in a narrow range. This consolidation would limit significant upward movement, leaving the asset in a prolonged stagnation phase.
Read more: How To Buy XRP and Everything You Need To Know
If XRP experiences renewed bearish pressure, a drop to $0.47 is likely, aligning with the 23.6% Fibonacci level, also known as the bear market support floor. This level could prevent further declines, but a breach below it would invalidate any remaining bullish outlook, potentially leading to further price erosion.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source: https://beincrypto.com/xrp-price-prediction-november-2024/