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XRP is facing intense selling pressure, with its price plummeting over 13% in the past week. The cryptocurrency is currently teetering around the crucial $2 mark, a level that could determine its next major move. After hitting a low of $2.03, XRP briefly rebounded above $2.11, but uncertainty remains over whether this recovery is sustainable. Amidst this volatility, a prominent analyst has predicted a potential drop to $1.5 if XRP fails to maintain support at $2.03.
MVRV Indicator Signals Bearish Shift
Market Value to Realized Value (MVRV), a key metric for assessing market sentiment, has dipped below its 200-day moving average. Crypto analyst Ali Martinez noted that this crossover often signals a macro downtrend, raising concerns about further declines. The shift in MVRV suggests that XRP may be entering an extended bearish phase, prompting investors to remain cautious.
However, the rise in XRP options trading volumes by 125% has injected some optimism into the market. Some analysts believe this surge in derivatives activity could fuel a price rebound to $2.5 if bullish momentum picks up.
Ripple Crypto in a Make-or-Break Situation
At press time, XRP has shown slight recovery from its $2.03 low, with daily trading volumes soaring 35% to over $4 billion. Despite this, XRP futures open interest remains subdued, reflecting market indecision. A breakout above the $2.30 resistance level is necessary to confirm a bullish trend, with a potential upside target of $2.91.
If XRP fails to hold above $2.03, major support levels lie at $1.79 and $1.56. A breach below these levels could pave the way for a significant decline. On the other hand, if XRP maintains its footing above $2, some analysts anticipate a staggering 600% rally.
Ripple Lawsuit Uncertainty Looms
While Ripple and the SEC have agreed on no further cross-appeals, a resolution in the XRP lawsuit remains uncertain. An XRP advocate recently speculated that the SEC might delay an official announcement until August 7, a claim that former SEC attorney Marc Fagel dismissed as “stupid and wrong.” This ongoing legal battle continues to create uncertainty, potentially influencing XRP’s price trajectory.
As XRP hovers around critical levels, traders remain on edge, closely monitoring price action for the next big move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Is XRP Facing a 60% Drop?? Analysts Predict 60% Drop as Price Mirrors Past Collapses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
