Lately, many people have started selling their assets, causing the prices of major companies such as Bitcoin to fall sharply. Right now, altcoin prices are quite stable, but they are at a low point that we have seen in the last month. Bitcoin’s price is currently at $27,000, and it is testing the nerves of those looking to buy. On the other hand, XRP traders are trying to find opportunities to put some buying pressure near the dip. This could cause the price to rise slightly soon.
Traders turn bullish near the $0.48 dip in XRP
The price of XRP saw a significant decline today as buyer confidence fell after falling to $0.5. As a result, investors who expected a price increase above $0.5 and opened long positions withdrew their positions from the market. Coinglass data shows that more than $1.3 million in long positions were liquidated today, strengthening the immediate resistance line.
The decline was caused by manipulation rumors. In a tweet, an XRP influencer expressed concern over the alleged manipulation of the price of He said these financial powerhouses, traditionally known for manipulating assets such as gold, are reportedly influencing the value of XRP despite the recent legal victory over the SEC providing regulatory clarity.
From an on-chain perspective, traders are surprisingly bullish on XRP, with the long/short ratio reaching 1.0825. A surge in long positions is clearly visible near the $0.48 dip in XRP, with buyers holding a slight majority at 52% bullish positions. Conversely, sellers, who hold 48% short positions, are vigorously defending this resistance, although momentum appears to be somewhat in favor of buyers.
Furthermore, Open Interest has also spiked, gaining $16 million in the last twelve hours. This is bullish amid XRP’s recovery rally from the bearish mud.
What’s Next for the XRP Price?
The XRP price continued to fall below the uptrend line and faced a new wave of selling pressure near $0.5 after buyers failed to instill confidence. As a result, XRP price has now reached its monthly support line, creating an opportunity for accumulation. At the time of writing, the XRP price is trading at $0.4876, down more than 1.8% from yesterday’s price.
Bulls have successfully reversed the trend from the $0.48 dip and are now trying to send the price above the 23.6% Fib channel. If XRP successfully maintains its current momentum, we could see a recovery towards $0.5. Next, the bulls will try to overcome the resistance at $0.556. If they break, it will signal the start of a new uptrend, potentially pushing the XRP price above $0.6.
However, if the price fails to maintain its current rally, sellers will quickly take control and bulls could take profits, potentially sending the altcoin heading towards a bearish consolidation at $0.48-$0.45.