Over the last week, the XRP price charted a 15% uptick from the $0.45 level and has picked up the pace and is now oscillating near the $0.53 mark at press time.
As a new week began, XRP was among the top gainers on the daily as well as weekly charts, rallying 21.40% over the past 7 days. Despite macro fears regarding Federal Reserve policies, optimism stemming from the SEC vs Ripple case provided much-needed relief to the XRP price.
Renewed hopes for the XRP price
Sunday saw the XRP price rise by 3.8% to an intraday high of $0.540, as the sixth-largest cryptocurrency by market cap witnessed higher social volumes. At press time, XRP was trading at $0.534, up 4.23% on the daily chart.
Nonetheless, a strong positive sentiment was missing from the scene, indicative of the pullback seen in the weighted social sentiment on XRP.
From a technical point of view, XRP’s daily RSI was in the overbought region, indicative of higher buying pressure from retail traders. However, mellowed-down trade volumes presented some skepticism among buyers as social euphoria still lacked.
Furthermore, the funding rate heading into the positive territory indicates a bullish bias in the futures market, showing higher hopes for the XRP price in the near future.
Is the bottom in?
While XRP’s trajectory seemed to be gaining momentum from a price perspective, the MVRV ratio (365d) made a local high, showing an increased supply relative to realized value (cost basis). Higher MVRV values indicate a larger degree of unrealized profit in the market and increase the probability that investors will sell coins to lock in profits.
While MVRV lows made on the short-term and long-term show that the $0.31 level has acted as a local bottom, it still cannot be concluded that XRP’s long-term bottom is in.
Additionally, XRP is seeing dwindling development activity after making a peak in mid-September.
In the near term, owing to the high social anticipation and its bullish price trajectory, a continuing uptrend is likely.
The next crucial resistance for the XRP price is found at the $0.60 mark and will be eyed by bulls in the short term. However, an invalidation and pullback phase at this level could still occur.
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