The asset is now aiming to recover its recent losses, which would justify a rise to $0.54.
Ripple enjoys considerable support
Institutional investors are primarily behind the rise in Ripple’s price. Indeed, the latter have shown strong faith in XRP and have invested more than $1.1 million in this cryptocurrency. This significant investment also comes at a time when the Federal Open Market Committee (FOMC) is maintaining a restrictive monetary stance.
XRP thus recorded the highest flow of funds from institutional investors, which illustrates the strong confidence in the potential of this altcoin. Other major tokens such as Litecoin and Chainlink saw an inflow of $0.8 million, while Solana saw an outflow of $0.2 million.
Additionally, the Relative Strength Index (RSI) is currently in the bullish zone, indicating positive momentum. Indeed, this crucial technical indicator suggests that buying pressure is outweighing selling pressure, indicating a favorable outlook for XRP price.
The bullish RSI is currently reflecting growing bullish investor sentiment and therefore suggests that recent institutional investments could be wise.
A consolidation of the neutral line at 50.0 as support would further confirm the bullish trajectory for XRP. Therefore, if the indicator holds support above this line, it would mean sustained buying interest and a possible continuation of the upward trend.
Read more: How to buy XRP and everything you need to know
This technical confirmation would boost the confidence of investors, both individual and institutional, in the bullish prospects of the Ripple cryptocurrency.
Price prediction: rebound after losses
Currently at $0.51, XRP price is on the verge of breaking the 23.6% Fibonacci retracement. This line is also known as the bottom of the bear market support, and if XRP manages to turn it into support, it could offer the altcoin some relief from possible further losses.
With the altcoin poised to recover its recent losses, it would need to reach $0.54 to do so.
More information: Forecast XRP 2024/2025/2030
However, if the breakout fails, it would not be surprising to see the XRP price fall back below $0.50. A potential downside would also see the cryptocurrency test support at $0.47, negating the bullish thesis.
Moral of the story: XRP never guarantees anything, up or down.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.