Ripple sets the stage for 18% gains
- The price of XRP created a double top formation, leading to an 8% drop.
- This downtrend is expected to continue until it reaches $ 0.821, the 62% Fibonacci retracement level.
- A rebound from this barrier promises an 18% bullish rally to $ 0.961.
XRP price formed the second high on June 14, indicating the formation of a double top. As a result, Ripple begins to decline, heading towards an immediate level of support.
While the current movement of the Discount Token may look bearish, this is a minor retracement that should turn into a rally.
XRP price at an inflection point
The price of XRP rose 18% to $ 0.93 after marking the 70.5% Fibonacci retracement level at $ 0.783 on June 8.
The immediate support level at $ 0.831 or the 62% Fibonacci retracement level at $ 0.821 will likely cushion this decline. At this point, a resurgence of buying pressure could trigger a bullish rally that pushes the price of XRP up 18% to the resistance barrier at $ 0.969.
If buyers support this uptrend, Ripple could venture higher and mark the high range at $ 1.103. This move would represent a 33% lead from $ 0.821.
4 hour XRP / USDT chart
Supporting this rise is the 30-day market value-to-realized (MVRV) model, currently hovering in the opportunity zone at -10.42%. This fundamental index is used to measure the average profit / loss of investors who bought XRP in the past month.
A negative value indicates that short-term market participants are selling, creating an opportunity for long-term holders to accumulate.
MVRV 30 Day XRP Chart
The measure of the number of whale transactions, which tracks transfers valued at $ 100,000 or more, further specifies that there is no risk of sale. Often times, a peak in this chain pattern coincides with local highs, indicating that whales are unloading their stocks.
Since the number of trades important to the price of XRP rose from 803 on June 2 to 242 on June 15, a sudden increase in selling pressure seems unlikely.
Table of number of XRP whale transactions
From a technical and on-chain standpoint, the price of XRP remains bullish over the medium term. However, a decisive close of the 4 hour candlestick below the 79% Fibonacci retracement level at $ 0.745 will invalidate the bullish thesis explained above.
In such a case, investors can expect Ripple to venture into the low range at $ 0.651.