Home Altcoins News XRP Price Dips 17% Before Rebounding: Bulls Set Sights on $3.2 Resistance

XRP Price Dips 17% Before Rebounding: Bulls Set Sights on $3.2 Resistance

XRP Price

XRP has been riding a volatile wave, with the price experiencing a sharp 17% decline before a notable rebound. While this dip caught the attention of investors, the token’s long-term outlook remains bullish, driven by accumulation and growing confidence in Ripple’s network. However, a key resistance at $3.2 remains a critical hurdle for XRP in the short term.

XRP’s Price Slump and Rebound

XRP has been in an uptrend since November, seeing an explosive 518% increase during this period. Despite the price slump in the past week, XRP remains one of the most talked-about cryptocurrencies, drawing increased adoption and attention.

The latest price action on the 6-hour chart indicates a bearish trend in the short term. XRP fell below a key support level at $2.95, marking a lower low. This move has created a bearish market structure, with the On-Balance Volume (OBV) showing lower highs and lower lows throughout January. This suggests that the retracement from $3.4 was not driven by accumulation, but rather distribution, signaling selling pressure.

However, after hitting a local low at $2.655, XRP managed to bounce back by 17% in the past 24 hours. Despite this recovery, the short-term outlook remains uncertain, with the Relative Strength Index (RSI) at 52.5, indicating neutral market sentiment.

On-Chain Metrics: Accumulation Despite Price Slump

While the price of XRP has been fluctuating, on-chain metrics paint a more positive picture. Despite the recent price dip, dormant circulation has been minimal, meaning there has been little movement of tokens—an indicator that typically accompanies selling pressure. The fact that XRP has seen limited circulation suggests that there is a lack of panic selling, and many holders are choosing to accumulate rather than liquidate their positions.

Furthermore, the mean coin age, which tracks the average holding period of XRP tokens, has been increasing. This is another sign of accumulation, indicating that investors are holding onto their tokens for the long term. This bullish sentiment is backed by the 30-day Market Value to Realized Value (MVRV) ratio, which is currently positive, signaling that short-term holders might take profits in the near future.

Resistance at $3.2: A Key Hurdle for XRP

One of the major challenges facing XRP in the near term is the resistance zone around $3.2. The bulls have struggled to break through this level, and recent price action has only added to the difficulty. While on-chain data suggests growing confidence in the network and a steady increase in the number of addresses on the XRP Ledger, the token has yet to overcome the key $3.2 resistance.

In the coming days, XRP could see some price consolidation or slight downside movement as short-term holders take profits. However, as accumulation continues and the market adjusts, there is a strong possibility that XRP will eventually push past the $3.2 resistance, leading to a potential bullish rally.

What’s Next for XRP?

XRP has faced several challenges in recent weeks, from a sharp price drop to bearish market structures. However, on-chain metrics indicate that the underlying accumulation trend is still intact, which could provide the foundation for a move higher. If the bulls can break the $3.2 resistance level, XRP could see significant upward momentum.

For now, traders should monitor the price action closely. While the short-term outlook remains uncertain, the long-term prospects for XRP appear promising. If the accumulation trend continues, XRP may be able to overcome its resistance levels and make another move toward new highs in the coming weeks.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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