XRP price has shown incredible resilience in the past few days, but the recent Bitcoin crash has knocked Ripple down. As a result, $3.58 million Ripple longs faced liquidations on September 6.
Profit-taking Could Dampen XRP Price Recovery
According to Santiment’s Net Realized Profit/Loss indicator, investors sold 353 million XRP to book profits on September 1. Despite this sell pressure and broader crypto market crash, Ripple has shed only 4%, which shows the resilience and buying pressure.
However, technical analysis for XRP price shows a high chance of recovery in the coming days.
XRP Price Analysis: Ripple Bulls Ready For a Bounce
Although XRP price shed 4.28% on September 6, the remittance token is at a critical reversal level. Based on the past two-month data there are interested buyers every time Ripple has dipped. During these dips, the Relative Strength Index (RSI) has been trending higher, producing higher lows, which adds credence to the bullish outlook.Furthermore, the yearly Volume Weighted Average Price’s (VWAP) lower limit at $0.503 has also played a pivotal role in supporting the price.
If history repeats, investors can expect XRP price to see a strong buying pressure followed by a recovery rally.
Here are the key levels that investors must pay attention to if Ripple price climbs higher:
- Yearly VWAP at $0.561, coinciding with a daily resistance level.
- Yearly VWAP’s upper limit at $0.619, also coinciding with another daily resistance zone, extending from $0.619 to $0.635.
These are the short-term targets and constitute 6% and 20% gains respectively from where XRP price trades today at $0.529. In a highly bullish case, where XRP overcomes the $0.635 hurdle and flips it into a support floor, the $0.716 hurdle is the next target.
On the other hand, if XRP price slips below the yearly VWAP’s lower limit at $0.503, it would invalidate the aforementioned bullish thesis. Such a development cold see the remittance token crash 6% and revisit the $0.469.
Frequently Asked Questions (FAQs)
XRP price faced liquidations of $3.58 million on September 6 due to the recent Bitcoin crash, which knocked Ripple down and triggered a 4.28% price drop.
Yes, technical analysis suggests a high chance of recovery in the coming days, with key levels to watch being the yearly VWAP at $0.561 and $0.619, which could lead to 6% and 20% gains respectively.
If XRP price slips below the yearly VWAP’s lower limit at $0.503, it would invalidate the bullish thesis and potentially lead to a 6% crash, revisiting the $0.469 level.
Akash Girimath
Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/will-xrp-price-bounce-back-stronger-after-whale-activity/
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