- XRP was rejected at $0.70, leading to a drop to $0.67.
- If XRP continues to fall, entries may appear between $0.62 and $0.64.
- Should the $0.62 support fail to hold, the next target for long XRP could be around $0.54.
Ripple (XRP) made an eye-catching move earlier in the week, jumping above Binance Coin (BNB) in terms of market cap. Although BNB had retained its position, XRP cemented its stay as one of the top-performing assets out of the top 10.
At press time, XRP’s value was $0.67, thanks to a 12.18% increase in the last seven days. But at the same time, the press time value was a decrease from $0.73, which the token hit on November 6.
Bulls Need to Defend the $0.62 Support
According to Cryptonary, an analyst, the rejection at the $0.70 key resistance was one of the reasons XRP’s price fell. The analyst also mentioned that the Relative Strength Index (RSI) hitting 85.53 on November 6 was also instrumental to the price reversal.
At press time, the RSI was down to 54.55. This decrease in the RSI reading is a testament to the profit-taking that has happened since the price rose to $0.73. Should the selling pressure continue, XRP may fall to $0.64.
Also, there was support at $0.62. For XRP to stay above $0.64, bulls have to defend $0.62. If not, XRP may risk dropping below $0.60. Furthermore, the Moving Average Convergence Divergence (MACD) was -0.0047.
Negative values of MACD indicate increasing downward momentum. Additionally, the 26-day EMA (orange) was above the 12-day EMA (blue). This is a confirmation that sellers were in control, and a further decrease below $0.67 is very likely.
However, if XRP drops while support holds, traders should be looking at entries around $0.60 to $0.64. Meanwhile, another analyst, Michaël van de Poppe, also commented on XRP’s performance.
Another Recovery Could Be Valid
Van de Poppe, who is also the founder of MNTrading, noted that XRP may fall to $0.54. He added that, if that happens, it could be an entry point for traders looking to long the token. A look at the funding rate showed that traders seem confident about XRP’s revival.
By definition, the funding rate shows if market players are bearish or bullish on a specific cryptocurrency. If the funding rate increases, it means more positions are tilting toward the bullish side.
Conversely, a decreasing funding rate means traders are opening more short positions. At the time of writing, Coinalyze revealed that XRP’s funding rate had increased to 0.025.
This reading indicates that there are more open long positions than short ones. Thus, there is a high chance that if XRP falls to $0.54 or $0.62, another uptrend may follow.
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