The cryptocurrency markets are experiencing fluctuations as the week begins, attracting the attention of traders and investors around the world. Ripple’s digital asset, XRP, has emerged as a focus point, defying expectations with a soft bullish glow amid 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 take a look at the intriguing details and potential implications for XRP.
Impending Bull Run for XRP
Santiment’s analysis reveals a fascinating insight into the current state of the cryptocurrency market. While most assets show positive indicators, suggesting traders are capitalizing on their investments, XRP stands out with a contrasting statistic of -0.267.
This indicates that a significant portion of investors are taking losses on their XRP trades. Surprisingly, Santiment interprets this seemingly discouraging landscape as a subtle signal of an impending bullish run.
Also Read: Ripple News: XRP Shows Resilience Amid Challenges, Ranked Among Top 10 Crypto Gains of the Year
Navigating market barriers
Since March 26, XRP has been stuck in a tight trading range between $0.550 and $0.413. Breaking the $0.550 upper limit could act as a catalyst and send a clear signal to buy XRP.
If this scenario unfolds, XRP has the potential to rise by as much as 40% and reach $0.778. This goal is within reach, given the intended pattern of double bottoms.
Bearish Divergence: A Warning Sign?
Since investors estimate the potential of a rally, it is essential to approach the situation with caution. The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators point to a remarkable pattern known as “exaggerated bearish divergence”. While the price of XRP has reached similar highs, these indicators have charted clear lower lows. This configuration often precedes a sharp downturn in the asset in question.
This Might Interest You: Ripple News: XRP Price Could Rise Over 20% If This Scenario Happens
At the time of writing this article, XRP was trading at $0.47.
