Over the past few weeks, Ripple’s XRP has been on the rise, showing signs of recovery from a significant support level. However, for the market to transition into a bullish phase in the coming months, it is crucial for a key resistance level to be surpassed.
All eyes are currently on the release of the Hinman emails, expected to be a game-changer. The question remains whether this event will follow the “buy the rumor, sell the news” pattern or if it will trigger a different market reaction. Analyst Cheeky Crypto took a closer look at the recent developments in the XRP market and discussed potential future scenarios in a new YouTube video.
Considering the current market conditions, he said that there are two possible scenarios for XRP. Firstly, it might see a retracement towards the range of $50.51 to $51.74, which aligns with the wave two positionings. Alternatively, there could be a double-bottom formation with a target range between $50.74 and $51.44. These levels would put XRP in a wave two position, potentially paving the way for a further rally.
The price has been riding the hourly 50 EMA, acting as a support level, and remains above the equilibrium area. However, a fair value gap of around $50.25 suggests a possible retracement towards 50 cents.
Additionally, he spoke about the impending release of the Hinman emails, which has fueled FOMO (fear of missing out) among investors. Consequently, XRP has seen increased buying interest. Nonetheless, being in a position on XRP seems favorable compared to being out of it, especially with the recent rally. Moreover, volume profiles indicate a divergence, with higher highs in price action and lower highs in volume.
At the time of writing, XRP is trading at $0.53 and is up by more than two percent in the last 24 hours.