XRP’s dominance declines due to consolidation at $0.6! Here’s what’s next for XRP price:
Amid recent high volatility in the markets, Bitcoin and Ethereum have experienced significant price fluctuations as they test key resistance levels. However, XRP failed to follow this trend. The price has been relatively stable over the past few weeks and has consolidated around $0.6, reducing its market power. This has sparked bearish discussion among analysts, with some predicting that XRP could soon undergo a significant correction before a bull market as resistance levels strengthen.
January is bullish for XRP
XRP’s upward momentum has stalled recently. Bearish sentiment surrounding XRP appears to be increasing after Ripple released 1 billion XRP from its escrow account today. This routine process, which takes place on the first of every month, involves three separate transactions to provide controlled amounts of liquidity to the market.
Even with XRP currently consolidating around the $0.6 level, January’s historic performance may boost investor confidence. Over the past four years, XRP has generally seen a positive trend this month, with 2022 being the only exception. On average, XRP saw an increase of 35% in January.
If this trend continues this year, XRP will likely experience a significant recovery from recent lows, rebounding all the way to $0.81 by the end of the month. This analysis is further supported by the increase in on-chain activity, with the number of daily unique active addresses reaching a five-month high of 72,680.
However, XRP’s market dominance has decreased since November and is currently trading at 2.07%. Recently, there has been a noticeable struggle between bullish and bearish traders near the $0.6 level, as evidenced by the long/short ratio, which is currently at 0.9771. Currently, about 51% of positions are expecting weakness, while 49% are expecting a rise in XRP price.
What’s next for XRP price?
XRP price continued to struggle as its upward movement stalled at the key resistance of $0.65, showing that bulls are unable to overcome this obstacle. However, due to continued buying demand close to the decline, the price did not fall below $0.6. At the time of writing, XRP price is trading at $0.62, down more than 0.4% from yesterday’s price.
XRP price is now hovering between the moving averages on the 4-hour price chart, reflecting a lack of clear direction from buyers or sellers. The relative strength index (RSI) trading around the near-flat moving average and midpoint suggests that the XRP price could continue to move within the $0.57-$0.65 range for some time.
For buyers to take advantage, the price must rise above $0.65. Achieving this could push the price up to $0.68-$0.74, an area expected to act as significant resistance. Conversely, if the price falls below $0.58, it signals a reversion to a short-term bearish trend.