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February 26, 2024
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XRP Sees Mild Capitulation Amid Profit-Taking, Santiment Forecasts Bullish Rally

The post XRP Sees Mild Capitulation Amid Profit-Taking, Santiment Forecasts Bullish Rally appeared first on Coinpedia Fintech News

The cryptocurrency markets are experiencing fluctuations as the week kicks off, capturing the attention of traders and investors worldwide. Ripple’s digital asset, XRP, has emerged as a focal point, defying expectations with a gentle bullish glow amidst a wave of mild investor capitulation.

Market intelligence platform Santiment delves into the nuances of XRP’s optimism, using the Ratio of On-chain Transaction Volume in the Profit/Loss metric.

Let’s explore the intriguing details and potential implications for XRP.

Imminent Bull Run For XRP

Santiment’s analysis reveals a fascinating insight into the current state of the cryptocurrency market. While most assets demonstrate positive indicators, suggesting traders are capitalizing on their investments, XRP stands out with a contrasting metric of -0.267.

This indicates that a significant portion of investors are facing losses on their XRP transactions. Surprisingly, Santiment interprets this seemingly disheartening landscape as a subtle signal of an impending bullish run.

Also Read: Ripple News: XRP Shows Resilience Amidst Challenges, Ranks Among Top 10 Crypto Gainers of the Year

Navigating Market Barriers

Since March 26, XRP has remained locked in a tight trading range between $0.550 and $0.413. Breaking above the upper boundary at $0.550 could serve as a catalyst, sending a clear signal to purchase XRP.

If this scenario unfolds, XRP has the potential to surge by a robust 40%, reaching $0.778. This target is within reach, considering the envisaged double-bottom pattern.

Bearish Divergence: A Warning Sign?

As investors evaluate the potential of a rally, it is essential to approach the situation with caution. The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators highlight a noteworthy pattern known as “exaggerated bearish divergence.” While XRP’s price has managed to reach equivalent highs, these indicators have charted clear lower lows. This configuration often precedes a sharp downturn for the asset in question.

This Might Interest You: Ripple News: XRP Price Might Surge More Than 20% If This Scenario Plays Out

At the time of writing this article, XRP was trading at $0.47.

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