XRP has faced significant downward pressure in recent months, aligning with the broader cryptocurrency market downturn. However, Captain Faibik, a renowned market analyst, suggests the token may have bottomed out and could be gearing up for a notable mid-term rally.
XRP Touches Key Support Level
Faibik’s analysis emphasizes XRP’s relative resilience compared to other cryptocurrencies during the market slump. Although XRP dipped below $0.50 for three consecutive months, it only hit a low of $0.4620 on June 24th. This price level coincides with the Fibonacci 0 retracement level—a historically strong support zone for assets.
Analysts are monitoring whether this support holds. If it does, a retest could serve as a launchpad for recovery. However, any sustained rebound depends heavily on broader market conditions.
Recent indicators suggest Bitcoin may be approaching a reversal, which could positively influence the entire crypto market and provide tailwinds for XRP’s resurgence.
Mid-Term Target of $2 Based on Technical Indicators
Faibik’s $2 mid-term projection for XRP stems from multiple technical factors. Notably, XRP last reached the $2 mark during its 2018 bull run but fell short in 2021—partly due to Ripple’s ongoing SEC lawsuit. With the lawsuit nearing resolution, a favorable outcome could catalyze XRP’s long-awaited recovery.
Technically, XRP has formed a symmetrical triangle pattern on its weekly chart since 2020. A breakout above this pattern’s upper trendline could propel the token toward the $2 target.
Market Metrics Hint at Potential Reversal
Santiment data reveals declining volatility in XRP’s price action, hitting multi-month lows. Reduced volatility during downtrends often signals consolidation, where buyers and sellers reach temporary equilibrium—potentially indicating an impending reversal.
👉 Why XRP’s volatility drop could signal a bullish reversal
Short Squeeze Could Fuel Rebound
Coinglass data shows a slight dominance of short positions in XRP’s futures market (Long/Short Ratio: 0.9857). If a recovery gains traction, short sellers may rush to cover positions, triggering a short squeeze that could accelerate upward momentum.
As of the latest data, XRP trades at $0.4773—a modest 0.48% daily gain. While still below the critical $0.50 level, converging technical and on-chain signals suggest a potential trend reversal.
FAQs
1. Why is XRP considered undervalued?
XRP’s prolonged downtrend, coupled with its strong utility in cross-border payments, makes it a prime candidate for recovery once market sentiment improves.
2. What’s the significance of the $0.46 support level?
This level aligns with Fibonacci 0 retracement—a key technical support zone that historically stabilizes prices before rallies.
3. How likely is XRP to hit $2?
While ambitious, a combination of technical breakout, lawsuit resolution, and broader market recovery could make $2 feasible in the mid-term.
4. What role does Bitcoin play in XRP’s rebound?
Bitcoin’s market dominance means its recovery often lifts altcoins like XRP, creating favorable conditions for a rally.
👉 Explore XRP’s latest price trends and analysis
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.