to leave a comment.
XRP Price Prediction: Targeting $1.20 Breakout Amid Spot ETF Outflows and Retail Investor Exits
▲ Ripple (XRP) ©
Despite strong selling pressure dominating the cryptocurrency market recently, XRP (Ripple) has successfully defended its support level and built short-term upward momentum, increasing the possibility of breaking the $1.20 mark.
According to investment media FXStreet on July 2 (local time), the XRP price is trading above $1.07 on Thursday, showing an upward trend. This rebound comes after testing the $1.03 support level amidst selling pressure over the past few weeks. A macro background factor was the news that talks between the U.S. and Iran in Doha made positive progress on memorandum of understanding (MoU) related matters and agreed to continue future discussions, leading investors to show renewed interest in risk assets.
However, institutional investor interest in XRP has somewhat weakened, recording net outflows for two consecutive days. According to SoSoValue data, approximately $3 million flowed out on Tuesday, followed by a moderate outflow of about $2 million on Wednesday. These continuous capital outflows suggest that risk-off sentiment still dominates the market and could limit XRP's upward movement in the short term.
Retail investor demand and market confidence are also trending weaker. Open Interest in the futures market decreased from $2.31 billion the previous day to $2.29 billion on Thursday. From a broader perspective, this indicates a lack of investor confidence in XRP's short- and medium-term outlook. In other words, bears (selling resistance) are willing to pay a premium to maintain short positions on XRP, while bulls (buying forces) are reluctant to open new long positions.
From a technical analysis perspective, XRP attempted to recover from the $1.03 support level and rose to the $1.07 mark, but it remains below key moving averages, indicating that downward pressure still prevails in the short term. The 50-day Exponential Moving Average (EMA) at $1.19, the 100-period EMA at $1.30, and the 200-day EMA at $1.52 all act as upper resistance levels, forming an overall downtrend structure. Additionally, the Bollinger Bands' mid-boundary at $1.11 and the potential trendline breakout area at $1.22 are also short-term obstacles hindering rebound attempts.
However, auxiliary indicators suggest a moderate strengthening of momentum. The Relative Strength Index (RSI) on the daily chart is still below the neutral baseline of 50 but is rising above 40, and the Moving Average Convergence Divergence (MACD) histogram has also turned slightly positive, indicating a slight improvement in short-term buying pressure. For XRP to achieve a strong upward extension, it needs to close the daily candle above the upper Bollinger Band at $1.24, in which case it could sequentially target $1.30 and $1.52. Conversely, if the support level breaks, the lower Bollinger Band at $0.99 is expected to become a key support level where new buying interest could enter.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.