XRP, the cryptocurrency linked to Ripple, might be gearing up for a significant squeeze against Bitcoin (BTC). Currently, the XRP/BTC pair is trading at 0.00000968 BTC, showing a 34.5% decline since the start of the year. However, XRP has rebounded with a 27% gain since June, hinting at a potential turnaround.
What’s brewing behind the scenes? Read on to find out.
A crypt analyst recently pointed out in a post that XRP could be heading for a squeeze, based on its historical patterns. A squeeze occurs when an asset’s price rapidly increases due to a large number of short positions being forced to close.
XRP experienced a short-lived squeeze in August after Judge Analisa Torres’ final judgment in the SEC vs. Ripple case. Given the current market conditions, a similar squeeze might happen again, driven by market forces and investor behavior.
However, this bullish momentum didn’t last long, similar to last year when XRP saw a brief price spike after the court acknowledged secondary XRP sales as non-securities, but it failed to maintain that upward trend.
The XRP Ledger ecosystem is also facing some hurdles. Artur Kirjakulov, co-founder of XPMarket, noted that its market cap has hit its lowest level since January 2022. This decline suggests that some projects and developers are moving away from XRP to other blockchain platforms, potentially reducing innovation and investor confidence within the ecosystem.
Additionally, missing out on popular trends like DeFi and meme coins could be holding the ecosystem back.
Despite these challenges, XRP remains the 7th largest cryptocurrency by market cap, valued at $29.6 billion. There are encouraging signs, such as higher lows within an ascending channel, which reflect ongoing optimism and buying interest. However, XRP still trades below key Exponential Moving Averages (50, 100, and 200), indicating that more strength is needed to overcome resistance levels.
If XRP stays within this ascending channel, it could reclaim $0.55 and possibly aim for higher resistance levels at $0.60 or beyond. On the downside, a break below the channel’s support could see XRP falling back to previous lows around $0.50.
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The future of XRP will largely depend on its ability to regain momentum and tap into new opportunities. Will it be a bull run or a bear market? We’ll have to wait and find out.
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