CoinDesk Report:
XRP has declined by 3.22% in the past 7 days and 6.33% within 24 hours. Despite these drops, market sentiment remains optimistic as analysts eye a target of $35.
In recent weeks, XRP has faced speculation surrounding Ripple’s ongoing legal issues. During this period, XRP has experienced high volatility and a consistent downward trend.
Over the past seven days, XRP has dropped by 3.22%. Analysts view this as potentially marking the end of the bear market and anticipating a forthcoming trend reversal.
Based on historical data, multiple cryptocurrency analysts believe prices will surge in the coming months.
According to cryptocurrency analyst MikybullCrypto, upcoming reversal patterns echo those seen in 2017. On his platform, he shared, “Given the current trajectory, there’s potential for a significant rebound akin to 2017. Sentiment around it is pessimistic, which makes me believe such a scenario could unfold.”
Another analyst shares a similar view, analyzing cyclical patterns from 2017 and how current trends mirror the past.
Tylie Eric expressed optimism on his X page about an impending price surge, stating, “One after another. I believe XRP has checked all the boxes for continuing the third and fifth waves, just like in 2017!”
In 2017, XRP saw a staggering 1400% increase within a year, even surpassing BTC during the same period. Therefore, based on similar patterns, the double bottom pattern in 2017 propelled prices to $0.3.
Thus, if the trend continues, prices could rise to $35.
What do the price charts reveal?
According to AMBCrypto’s analysis, XRP has seen a downtrend in recent weeks. As of the time of writing, XRP traded at $0.4523 after a 6.33% drop in 24 hours.
Simultaneously, its trading volume surged by 69.78% to $1.5 billion. According to CoinMarketCap, XRP’s market cap decreased by 6.33% to $25.1 billion.
Despite the price decline, market sentiment remains largely optimistic. According to Coinglass, XRP’s Netflow has been negative for the past month, standing at -$4.03 at the time of writing.
Negative Netflow indicates investors are withdrawing assets from exchanges to store them in private wallets, suggesting a long-term holding mentality rather than selling.
This reflects confidence in the cryptocurrency’s future value.
As of writing, XRP’s Money Flow Index (MFI) stands at 38, indicating consolidation. Similarly, financial institutions see this level as a buying opportunity due to lower cryptocurrency prices.
Accompanying the buying opportunity is buying pressure, leading to a trend reversal.
Looking ahead, AMBCypto’s analysis of CryptoQuant shows the exchange has been at elevated levels over the past seven days. Last week, XRP reported highs of $757.7 million and lows of $1.3 million.
This month, the company reported sustained high rates, peaking at $752 million and dropping to $364 million.
Higher foreign exchange outflows indicate investors are increasing their holdings, preparing for the future. This bullish sentiment suggests investors are confident in altcoin’s future prices.
Can XRP really reach $35?
XRP has been consolidating over the past seven days. With a 3.22% drop in the last 24 hours, the token continues to focus on its next resistance level at $0.49.
If XRP breaks through this level in an exceptionally optimistic short-term scenario, it will attempt to challenge the resistance zone at $0.549.
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However, failing to hold around $0.459 support could lead to further declines towards $0.4245, as bearish pressure intensifies.
Despite positive market sentiment and indicators supporting potential trend reversals, reaching $35 is a long process, estimated to possibly occur by 2025.
